Arizona 2025 2025 Regular Session

Arizona Senate Bill SB1501 Comm Sub / Analysis

Filed 03/14/2025

                     
  	SB 1501 
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ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-seventh Legislature 
First Regular Session 
Senate: NR DPA 5-2-1-0 | 3
rd
 Read 17-11-2-0-0  
House: NREW DP 5-4-0-1  
 
SB1501: grid security; cybersecurity; reviews; commission 
Sponsor: Senator Farnsworth, LD 10 
Caucus & COW 
Overview 
Instructs the Arizona Corporation Commission (Commission) to conduct an annual grid 
security review that will evaluate the technologies and securities of the grid system.  
History 
The Commission is a statewide agency and public utility commission that is responsible for 
ensuring safe, reliable and affordable utility services. The Commission regulates investor-
owned or privately-owned utilities that provide utility services (ACC). 
The Commission's Power Plant and Transmission Line Siting Committee (Committee) has 
jurisdiction over proposed electrical generating plants and above ground transmission lines 
that meet certain criteria. When a utility plans to build one of these facilities it must apply 
for a Certificate of Environmental Compatibility (CEC) and after review of designated 
criteria, public hearings and a vote by the Committee the utility may be granted the CEC for 
their proposed facility. The plans are reviewed biennially by the commission and the 
commission then issues a written decision regarding the functionality of the facility (A.R.S. 
Title 40, Chapter 2, article 6.2). 
Generation, transmission and distribution are the main functions of the grid which provide 
power to residents of the state of Arizona. Utility owners and operators are often the entities 
responsible for improvements that help secure electricity grids (DOE).  
Provisions 
1. Requires the Commission to conduct an annual grid security review and directs the 
Commission to: 
a) research and evaluate the generation and grid management technologies that 
accommodate two-way flow of electricity and that will protect against a physical 
attack and cyberattack; 
b) evaluate the dangers associated with an electromagnetic pulse and the steps 
necessary to secure a continuous supply of electricity to residents of this state; 
c) evaluate new information technology systems and how protections are implemented; 
d) encourage investor-owned utilities to rectify deficiencies identified in the grid security 
review and develop security plans that evaluate and consider the time and cost 
associated with the changes. This provision does not apply to public power entities or 
electric cooperatives. 
e) review cybersecurity and grid protection protocols every two years. (Sec.1) 
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note   
  	SB 1501 
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2. Contains a legislative findings and intent clause that addresses grid reliability and the 
effects of electromagnetic pulses. (Sec. 2)