In a move impacting the renewable energy landscape in Arizona, Governor Katie Hobbs has vetoed legislation known as HB 2618. This proposed law sought to enforce a new series of requirements on operating solar and wind power plants within the state, sparking significant controversy.
The proposed bill contained a comprehensive list of what cities, towns, and counties could adopt in terms of zoning standards, site-specific conditions, and permitting requirements for renewable energy facilities. One of the more significant provisions was a mandate for facility owners to have a decommissioning plan in place and to post a bond. This bond would act as insurance, covering the costs if a company goes bankrupt or abandons the project. The legislation also demanded that companies restore and re-establish soils and vegetation using native seed mixes after they decommission their facilities.
Moreover, the bill called for liability insurance requirements to protect the community from any financial obligations due to injuries or other damages caused by the plant.
Critics of the bill, including Gov. Hobbs, argued that the legislation would create an inconsistent patchwork of regulations for renewable energy projects across the state, which could have a chilling effect on the development of renewable energy. Hobbs expressed concern that the bill would result in additional regulatory confusion for businesses, potentially negatively impacting Arizona’s ability to attract, retain, and grow a renewable energy ecosystem, and even threatening the creation of good-paying jobs for everyday Arizonans.
Arizona renewable energy bill veto
The Interwest Energy Alliance, a group of major developers and manufacturers of large-scale renewable energy projects, also supported Governor Hobbs’ veto of HB 2618. The Alliance’s lobbyists maintained their openness to some oversight, but argued that the legislation imposed new requirements that exceeded existing powers of local communities. They viewed the bill as imposing an unnecessary regulatory burden on the industry.
The Sierra Club, an influential environmental organization, voiced similar opposition to the bill. Their primary concern was the overly prescriptive decommissioning requirements. They further argued that the legislation unfairly singled out solar and wind power producers for requirements of decommissioning standards without providing similar standards for other types of power production, such as oil, gas, and coal. They contended that counties already possess broad zoning authority and that the new law was unnecessary12.
Gov. Hobbs’ decision to veto the bill was a clear statement in favor of renewable energy businesses. It underscored her belief in the potential of renewable energy to be a significant part of Arizona’s economic and environmental future, while also acknowledging the need for effective and consistent regulations that do not unduly burden the industry or stifle its growth.
As the dust settles on this decision, it remains to be seen how this move will shape the future of renewable energy in Arizona and beyond.