This bill proposes to amend Arizona Revised Statutes by adding a new chapter that specifically addresses the construction of solar and wind energy projects in relation to agricultural operations. Under the new provisions, businesses are prohibited from contracting with residents or businesses in Arizona for such projects if they would reduce the size of an agricultural lessee's operation, unless they provide compensation for various losses incurred by the agricultural lessee. These compensations include loss of profits, the value of conservation measures, loss in operational value, relocation costs, and costs to mitigate losses.
Additionally, the bill establishes that agricultural lessees must provide credible evidence to the business to certify the amount of their expenses before compensation is made. The definition of "Agricultural lessee" is clarified to include lessees of state and federal lands leased for agricultural purposes. The overarching intent of the legislation is to protect agricultural operations in Arizona and ensure fair compensation for agricultural lessees affected by renewable energy projects.