Assigned to NR AS PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
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 proposed
renewable energy resource in Arizona that is not proposed by a public service corporation that is
regulated by the ACC or a public power entity.
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 ACC or a public power entity the
right of first refusal to construct, own or maintain any proposed renewable energy resource in
Arizona that is not proposed by a public service corporation that is regulated by the ACC or a
public power entity.
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 an outlined
renewable energy resource, to give written notice to the ACC 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 – Amended
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 an outlined
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
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 ACC on a form prescribed by the ACC 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 ACC to adopt implementation rules relating to the right of first refusal for public
service corporations to construct, own or maintain an outlined renewable energy resource.
8. Exempts from the requirements relating to the right of first refusal for public power entities
and public service corporations to construct, own or maintain an outlined 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.
Amendments Adopted by Committee
• Grants a public service corporation that is regulated by the ACC or a public power entity the
right of first refusal to construct, own or maintain any proposed renewable energy resource in
Arizona that is not proposed by a public service corporation that is regulated by the ACC or a
public power entity, rather than any renewable energy resource that is proposed in Arizona.
Senate Action
NR 2/4/25 DPA 5-3-0
Prepared by Senate Research
February 6, 2025
SB/SN/slp