Assigned to NREW FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
FACT SHEET FOR H.B. 2618
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 requirements or 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. FACT SHEET
H.B. 2618
Page 2
4. Stipulates that a transfer or sale does not eliminate the liability or responsibility of an applicant
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.
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 power plant owner or operator, if a part 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.
8. 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, to provide the city, town or county with a plan to cure the damage or deficiency as soon
as reasonably possible.
9. Requires the applicant or its successors or assigns, if a power plant remains nonfunctional or
inoperative for a continuous period of at least one year, without any further action by the city,
town or county, to remove the system and restore the sit at its own expense.
10. Requires the power plant owner or operator, if it is not reasonably possible for a power plant
owner or operator to restore the power plant to be functional or operational within one year, 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)
11. Requires a power plant owner or operator to provide a city, town or county where the power
plant is located with a Plan.
12. Requires the Plan 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 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) the financial resources that the power plant will use to accomplish decommissioning and
restoration; and
e) financial assurances.
13. 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 restoration is not necessary.
FACT SHEET
H.B. 2618
Page 3
Removal of Power Plant
14. 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 and fencing.
15. 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 and fencing.
16. 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 as prescribed by a city, town or county;
b) buried collection lines must be removed to a depth of at least 36 inches;
c) buried collection lines under a depth of 36 inches may remain in place unless otherwise
prescribed by a city, town or county; and
d) removal activities must be completed within 18 months after decommissioning initiation
unless otherwise approved by the city, town or county.
17. Requires the restoration of each site to include:
a) minimizing ground disturbance and restoring the site to its original ground contours, if
possible, or coordinating with the landowner to restore the site;
b) 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;
c) adequately restoring paved roads to their original condition following decommissioning
activities or leaving improvements in place with the landowner's consent;
d) allowing access roads, fencing, associated drainage improvements and any other residual
minor improvements to remain with the landowner's written consent; and
e) removing and remediating any hazardous materials and waste.
18. Allows a city, town or county, after providing reasonable notice to the property owner, to enter
the site to effect or complete decommissioning pursuant to the decommissioning plan.
19. 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.
20. Releases the power plant owner or operator from any obligation after the city, town or county
certifies that decommissioning and restoration is complete.
21. Requires the city, town or county, after certification that decommissioning and restoration is
complete, to return or release any remaining financial assurance. FACT SHEET
H.B. 2618
Page 4
Financial Assurance
22. 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.
23. 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.
24. Allows the city, town or county to use the financial assurance for the costs of correcting any
other acts of noncompliance.
25. 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.
26. 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.
27. 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
28. Requires a 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 power plant is located
related to the construction and operation of the power plant.
29. Requires a power plant owner or operator to immediately provide written notice of any change
in the insurance policy to the city, town or county where the power plant is located.
Miscellaneous
30. Applies the damage and deficiency requirements, the decommissioning and site restoration
requirements and the liability insurance requirements to an owner or operator of a power plant
that begins commercial operations before, on and after the general effective date.
31. Becomes effective on the general effective date.
House Action
NREW 2/14/23 DP 6-2-1-1
3
rd
Read 3/1/23 31-28-1
Prepared by Senate Research
March 28, 2023
RA/slp