Assigned to NR FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1113
renewable energy; public service corporations
Purpose
Grants public service corporations regulated by the Arizona Corporation Commission
(ACC) or public power entities the right of first refusal to construct, own or maintain any
renewable energy resource that is proposed in Arizona.
Background
The Arizona Constitution deems all corporations, other than municipal, engaged in
furnishing gas, oil, or electricity for light, fuel, power, water for irrigation, fire protection, or other
public purposes, or in furnishing, for profit, hot or cold air or steam for heating or cooling purposes
as public service corporations. Corporations, other than municipal, that engage in collecting,
transporting, treating, purifying and disposing of sewage through a system for profit or that
transmit messages or furnish public telegraph or telephone service, and all corporations other than
municipal, operating as common carriers are also deemed public service corporations (Ariz. Const.
art. 15 § 2).
Public power entity means any municipal corporation, city, town or other political
subdivision that is organized under state law, that generates, transmits, distributes or otherwise
provides electricity and that is not a public service corporation (A.R.S. § 30-801).
Renewable energy resource means a resource that generates electricity by using only the
following energy sources: 1) solar light; 2) solar heat; 3) wind; 4) biomass, including fuel cells
supplied directly or indirectly with biomass generated fuels; and 5) battery storage that is
independent from or coupled with other sources (A.R.S. § 41-1520).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Grants a public service corporation that is regulated by the Commission or a public power
entity the right of first refusal to construct, own or maintain any renewable energy resource
that is proposed in Arizona.
2. Requires a public service corporation that is operating in Arizona before the general effective
date, within 90 days after county approval of a zoning or special land use permit for a
renewable energy resource, to give written notice to the Commission of the public service
corporation's intention to construct, own or maintain the renewable energy resource in order to
exercise the public service corporation's right of first refusal to construct, own or maintain the
renewable energy resource. FACT SHEET
S.B. 1113
Page 2
3. Requires a public power entity that is operating in Arizona before the general effective date,
within 90 days after county approval of a zoning or special land use permit for a renewable
energy resource, to give written notice to the county where the renewable energy resource is
proposed to be located of the public power entity's intention to construct, own or maintain the
renewable energy resource in order to exercise the public power entity's right of first refusal to
construct, own or maintain the renewable energy resource.
4. Determines that if the public service corporation or public power entity fails to provide the
outlined notice, the public service corporation or public power entity surrenders the right of
first refusal to construct, own or maintain the renewable energy resource.
5. Allows, if the public service corporation fails to provide notice, any other public service
corporation to file an application with the Commission on a form prescribed by the
Commission to construct, own or maintain the renewable energy resource.
6. Allows, if the public power entity fails to provide notice, any other public power entity to file
an application with the county where the renewable energy resource is proposed to be located
on a form prescribed the county to construct, own or maintain the renewable energy resource.
7. Allows the Commission to adopt implementation rules relating to the right of first refusal for
public service corporations to construct, own or maintain a renewable energy resource.
8. Exempts from the outlined requirements relating to the right of first refusal for public power
entities and public service corporations to construct, own or maintain a renewable energy
resource:
a) exporting and nonexporting residential rooftop solar systems; and
b) nonexporting renewable energy resources that are not interconnected to transmission
infrastructure and that generate power for solely on-site use.
9. Defines public power entity and renewable energy resource.
10. Becomes effective on the general effective date.
Prepared by Senate Research
January 31, 2025
SB/SN/slp