Bill Text: AZ HB2646 | 2024 | Fifty-sixth Legislature 2nd Regular | Engrossed
Bill Title: Power plants; public service corporations
Spectrum: Partisan Bill (Republican 1-0)
Status: (Vetoed) 2024-04-23 - Governor Vetoed [HB2646 Detail]
Download: Arizona-2024-HB2646-Engrossed.html
|
House Engrossed
power plants; public service corporations |
|
State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024
|
|
HOUSE BILL 2646 |
|
|
|
|
An Act
amending title 40, chapter 2, Arizona Revised Statutes, by adding article 13; relating to public service corporations.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 40, chapter 2, Arizona Revised Statutes, is amended by adding article 13, to read:
ARTICLE 13. FORCED RETIREMENT OF ELECTRIC GENERATION FACILITIES
40-501. Definitions
In this ARTICLE, unless the context otherwise requires:
1. "Disposal" has the same meaning as dispose or disposition as used in section 40-285, subsection A.
2. "Electric generation facility" means a plant as defined in section 40-360.
3. "Forced retirement" means the closure, decommissioning or disposal of an electric generation facility as a result of a federal law or regulation that either:
(a) Directly mandates the closure, decommissioning or disposal of an electric generation facility before the planned retirement date that is established by the public service corporation or public power entity or the corporation commission's approved retirement date.
(b) Results in the costs of compliance being so high as to effectively force the closure, decommissioning or disposal of an electric generation facility before the end of the useful life of the electric generation facility or the recovery of all outstanding depreciation expenses on the electric generation facility.
4. "Public power entity" has the same meaning prescribed in section 30-801.
5. "Public service corporation" has the same meaning prescribed in article XV, section 2, Constitution of Arizona.
40-502. Closure; decommissioning or disposal; notice
A. In addition to the requirements prescribed in section 40-285, a public service corporation or public power entity may not initiate the closure, decommissioning or disposal of an electric generation facility within five years after the date the written notice is provided pursuant to subsection B of this section.
B. A public service corporation or public power entity shall provide written notice to the president of the senate, the speaker of the house of representatives, the chairperson of the senate natural resources, energy and water committee, or its successor committee, the chairperson of the house of representatives natural resources, energy and water committee, or its successor committee, and the director of the Arizona power authority within six months after the public service corporation's or public power entity's decision or application to the CORPORATION commission for an order pursuant to section 40-285 to close, decommission or dispose of an electric generation facility.
C. The notice of closure, decommissioning or disposal shall include all of the following:
1. The date the decision to close or decommission or to dispose of the electric generation facility was made.
2. The date of the intended closure, decommissioning or disposal.
3. A description of the public service corporation's or public power entity's electric generation facility that is intended for closure, decommissioning or disposal.
4. A description of the replacement power that the public service corporation or public power entity plans to use or rely on to meet customer and grid needs after the closure, decommissioning or disposal.
5. The reasons for the closure, decommissioning or disposal.
40-503. Transitioning to new electric generation facility
Notwithstanding section 40-502, a public service corporation or public power entity may:
1. Take any reasonable and prudent action necessary to convert or repurpose an existing electric generation facility that is powered by coal, petroleum, oil or natural gas to a new electric generation facility that is powered by natural gas, biomass, nuclear or hydrogen or any combination of these, including any action that has been approved by a permitting authority.
2. Install any reasonable and prudent emission reduction controls or improvements on the electric generation facility that maintain the net electric generating output of the facility at a lower rate of emissions per unit of output, including any action that has been approved by a permitting authority.
40-504. Procedure following receipt of notice of federal law; attorney general; enforcement
A. A public service corporation or public power entity that receives notice of any federal law or regulation that may result in the forced retirement of the public service corporation's or public power entity's electric generation facility shall inform the attorney general, the director of the Arizona power authority and each member of the corporation commission of the law or regulation within thirty days after the receipt of notice.
B. After receiving the information prescribed in subsection A of this section, the attorney general, the Arizona power authority and the corporation commission may each take any action necessary to defend the interest of this state with respect to the law or regulation, the public service corporation's or public power entity's electric generation facility or the total electricity generation by the public service corporation or public power entity, including filing an action in court or participating in administrative proceedings.
C. On the Arizona power authority's written request, the attorney general shall represent and take any actions that the Arizona power authority requests and that relate to subsection B of this section.
D. On the corporation commission's written request, the attorney general shall represent and take any actions that the corporation commission requests and that relate to subsection B of this section.
Sec. 2. Legislative findings
The legislature finds that:
1. Affordable, reliable, dispatchable and secure energy resources are important to the convenience, comfort and safety and preservation of the health of this state's residents.
2. This state and its residents have invested substantial resources in the development of affordable, reliable, dispatchable and secure energy resources within this state.
3. The early or forced retirement of an electric generation plant that provides affordable, reliable, dispatchable and secure energy is a threat to the convenience, comfort and safety and preservation of the health of this state's residents.
4. This state's police powers, reserved to this state by the United States Constitution, provide this state with sovereign authority to make and enforce laws for the protection of the health, safety and welfare of this state's residents.
5. This state's police powers, as articulated in article XV, section 3, Constitution of Arizona, provide this state with authority to make and enforce laws relating to public service corporations for the convenience, comfort and safety and preservation of the health of the residents of this state.
6. This state has a duty to defend the production and supply of affordable, reliable, dispatchable and secure energy from external regulatory interference.
7. This state's sovereign authority with respect to the retirement of an electrical generation facility for the protection of the convenience, comfort and safety and preservation of the health of this state's residents is primary and takes precedence over any attempt from an external regulatory body to mandate, restrict or influence the early retirement of an electric generation plant in this state.
8. For the purposes of section 40-504, Arizona Revised Statutes, as added by this act, "interest of this state" means:
(a) If the attorney general is acting independently pursuant to section 40-504, subsection B, Arizona Revised Statutes, as added by this act, the attorney general's interpretation of the legislative findings in this act.
(b) If the attorney general is acting on behalf of the Arizona power authority pursuant to section 40-504, subsection C, Arizona Revised Statutes, as added by this act, the Arizona power authority's interpretation of the legislative findings in this act.
(c) If the attorney general is acting on behalf of the corporation commission pursuant to section 40-504, subsection D, Arizona Revised Statutes, as added by this act, the corporation commission's interpretation of the legislative findings in this act.
