The proposed bill would amend current statutes regarding the issuance of Certificates of Environmental Compatibility (CEC) by expanding the factors considered during the evaluation process. Specifically, it would add the speculativeness of the proposed transmission line or plant, as identified by the existence of known offtakers, as a new factor for consideration. The bill defines "known offtakers" as specific buyers with legally binding, long-term contracts to purchase a substantial portion of a project's future output, and "speculativeness" as the level of risk or uncertainty associated with a project's financial success. This insertion aims to provide a clearer framework for assessing the viability of proposed projects.

Additionally, the bill makes several technical and conforming changes to existing language. It removes outdated provisions regarding project labor agreements and clarifies that compliance with local ordinances and regulations may be waived if deemed unreasonably restrictive. The bill also specifies that public service corporations or public power entities may consider their customers as known offtakers, exempting them from the requirement to identify specific buyers and contracts. Overall, these updates aim to enhance the regulatory framework governing the siting of power plants and transmission lines in Arizona.

Statutes affected:
Introduced Version: 40-360.06