The proposed bill amends Arizona law to establish specific compensation requirements for businesses contracting or subcontracting to construct solar or wind energy projects that impact grazing operations. Under the new provisions, businesses must compensate grazing lessees for losses incurred due to the reduction of their grazing operations, which includes loss of profits, loss in value of the operation, relocation costs, and costs to mitigate losses. Additionally, grazing lessees are required to provide credible evidence to certify the amount of these expenses before compensation is made.

This bill introduces new language that specifically defines the obligations of businesses towards grazing lessees, which is not addressed in the current law. It also defines "grazing lessee" to clarify who is entitled to compensation, focusing on lessees of state and federal lands leased for grazing purposes. Overall, the bill aims to protect the interests of grazing lessees affected by renewable energy projects, ensuring they receive fair compensation for their losses.