Arizona 2023 2023 Regular Session

Arizona House Bill HB2702 Comm Sub / Analysis

Filed 02/12/2023

                      	HB 2702 
Initials PAB 	Page 1 Natural Resources, Energy & Water 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-sixth Legislature 
First Regular Session 
 
 
HB2702: energy projects; grazing operations; compensation 
Sponsor: Representative Nguyen, LD 1 
Committee on Natural Resources, Energy & Water 
Overview 
Prohibits a business from contracting or subcontracting to build a solar or wind energy project that 
reduces the size of a grazing lessee's operation unless the lessee is compensated for certain 
costs. 
History 
Someone can lease allotments of state trust lands or Bureau of Land Management (BLM) lands 
or obtain permits on national forest lands for grazing livestock. The terms and conditions of these 
leases vary, particularly when a solar or wind development is planned for the same area. For 
example, when public lands are used for a purpose that precludes livestock grazing, the BLM will 
give the permittee at least two years' notice before the grazing permit/lease and grazing 
preferences are cancelled (43 Code of Federal Regulations § 4110.4-2(b)).  
Provisions 
1. Prohibits a business from contracting or subcontracting with a resident or business in Arizona 
to construct a solar or wind energy project that reduces the size of a grazing lessee's grazing 
operation unless the business compensates the grazing lessee for: 
a) loss of profits; 
b) loss in value of the grazing operation; 
c) cost to relocate the grazing operation; or 
d) cost to mitigate losses due to the reduction of the grazing operation. (Sec. 1) 
2. Requires a grazing lessee to provide credible evidence that certifies the amount of their 
expenses before being compensated. (Sec. 1) 
3. Defines grazing lessee. (Sec. 1) 
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note