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-REFERENCE TITLE: electric service providers; energy reliability
+CORBIN W.
+3/3/2026
+(602) 926-3848
 
-State of Arizona
+ARIZONA HOUSE OF REPRESENTATIVES
+FLOOR AMENDMENT EXPLANATION
+57th Legislature, 2nd Regular Session
+Majority Research Staff
 
-House of Representatives
+HB 2331: electric service providers; energy reliability
+HEAP FLOOR AMENDMENT
+1. Requires certain public power entities, on or after January 1, 2030 ensure
+that at least 85% of the generating capacity that is relied on to serve retail
+load customers consist of reliable resources.
+2. Defines generating capacity, intermittent availability and reliable resource as
+it relates to public power entities.
+3. Removes requirements of the Arizona Corporation Commission regarding the
+implementation and enforcement of this act.
+4. Modifies the definition of reliable resource as it relates to public service
+corporations.
+5. Removes the definitions of performance standard and resource accreditation.
 
-Fifty-seventh Legislature
+Fifty-seventh Legislature Heap
+Second Regular Session H.B. 2331
 
-Second Regular Session
+HEAP FLOOR AMENDMENT
+HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2331
+(Reference to NATURAL RESOURCES, ENERGY & WATER S/E Committee amendment)
 
-2026
+The bill as proposed to be amended is reprinted as follows:  1
+Strike everything after the enacting clause and insert:  2
+"<<Section 1.  Title 30, chapter 6, article 1, Arizona Revised 3
+Statutes, is amended by adding section 30-812, to read: 4
+30-812.  Public power entity; generating capacity; reliable
+5
+resources; definitions 6
+[A.  ON OR AFTER JANUARY 1, 2030, A PUBLIC POWER ENTITY THAT SERVES 7
+MORE THAN ONE MILLION CUSTOMERS IN THIS STATE SHALL ENSURE THAT AT LEAST 8
+EIGHTY-FIVE PERCENT OF THE GENERATING CAPACITY THAT IS RELIED ON TO SERVE 9
+RETAIL LOAD CUSTOMERS CONSISTS OF RELIABLE RESOURCES. 10
+B.  FOR THE PURPOSES OF THIS SECTION: 11
+1.  "GENERATING CAPACITY": 12
+(a)  MEANS THE NAMEPLATE ALTERNATING CURRENT CAPACITY, MEASURED IN 13
+MEGAWATTS, OF ELECTRIC GENERATION RESOURCES THAT ARE OWNED, CONTROLLED, 14
+CONTRACTED FOR OR OTHERWISE RELIED ON BY A PUBLIC POWER ENTITY TO SERVE 15
+RETAIL LOAD IN THIS STATE.   16
+(b)  INCLUDES CAPACITY FROM UTILITY-OWNED RESOURCES AND CAPACITY 17
+FROM PURCHASED POWER OR TOLLING ARRANGEMENTS THAT PROVIDE CAPACITY VALUE 18
+TO THE PUBLIC POWER ENTITY. 19
+2.  "INTERMITTENT AVAILABILITY" MEANS RESOURCE AVAILABILITY THAT IS 20
+PRIMARILY DEPENDENT ON WEATHER CONDITIONS, SOLAR IRRADIANCE, WIND SPEEDS 21
+OR OTHER NATURALLY VARIABLE CONDITIONS BEYOND THE OPERATOR'S CONTROL AND 22
+THAT CANNOT BE DISPATCHED ON DEMAND TO MEET SYSTEM NEEDS AS DETERMINED BY 23
+THE CORPORATION COMMISSION.  24
+3.  "RELIABLE RESOURCE" MEANS AN ELECTRIC GENERATION RESOURCE THAT 25
+IS DISPATCHABLE OR IS CAPABLE OF PROVIDING BASELOAD ENERGY AND THAT IS NOT 26
+Amendment instruction key:
+[GREEN UNDERLINING IN BRACKETS] indicates text added to statute or
+previously enacted session law.
+[Green underlining in brackets] indicates text added to new session law
+or text restoring existing law.
+[GREEN STRIKEOUT IN BRACKETS] indicates new text removed from statute
+or previously enacted session law.
+[Green strikeout in brackets] indicates text removed from existing statute,
+previously enacted session law or new session law.
+<<Green carets>> indicate a section added to the bill.
+<<Green strikeout in carets>> indicates a section removed from the bill.
+House Amendments to H.B. 2331
 
-HB 2331
+-2-
+SUBJECT TO INTERMITTENT AVAILABILITY, EXCEPT FOR ROUTINE MAINTENANCE AND
+1
+REPAIRS.]>> 2
+Sec. 2.  Title 40, chapter 2, article 1, Arizona Revised Statutes, 3
+is amended by adding section 40-207, to read: 4
+40-207.  Electric public service corporation; generating 5
+capacity; reliable resources; definitions 6
+A.  ON OR AFTER JANUARY 1, 2030, AN ELECTRIC PUBLIC SERVICE 7
+CORPORATION SHALL ENSURE THAT AT LEAST EIGHTY-FIVE PERCENT OF THE 8
+GENERATING CAPACITY THAT IS RELIED ON TO SERVE RETAIL LOAD CUSTOMERS 9
+CONSISTS OF RELIABLE RESOURCES. 10
+[B.  THE COMMISSION SHALL ENFORCE THIS SECTION IN ALL RELEVANT 11
+ADMINISTRATIVE PROCEEDINGS, INCLUDING: 12
+1.  ANY INTEGRATED RESOURCE PLAN OR EQUIVALENT PLANNING DOCKET.  13
+2.  ANY CERTIFICATE OF ENVIRONMENTAL COMPATIBILITY, CERTIFICATE OF 14
+CONVENIENCE AND NECESSITY OR OTHER APPROVAL PROCEEDINGS.  15
+3.  ANY RATE CASE AND COST RECOVERY PROCEEDING. 16
+4.  ANY COMPETITIVE SOLICITATION, REQUEST FOR PROPOSALS AND 17
+PROCUREMENT APPROVAL. 18
+C.  THE COMMISSION SHALL ENSURE THAT INTEGRATED RESOURCE PLANS, 19
+PROCUREMENTS AND COST RECOVERY REQUESTS ARE CONSISTENT WITH SUBSECTION A 20
+OF THIS SECTION.  21
+D.  BEGINNING JANUARY 1, 2031 AND EACH YEAR THEREAFTER, EACH 22
+ELECTRIC PUBLIC SERVICE CORPORATION SHALL FILE A REPORT WITH THE 23
+COMMISSION THAT DEMONSTRATES THE ELECTRIC PUBLIC SERVICE CORPORATION'S 24
+COMPLIANCE WITH SUBSECTION A OF THIS SECTION.  THE REPORT MUST INCLUDE: 25
+1.  A LIST OF RESOURCES THAT ARE COUNTED TOWARD GENERATING CAPACITY. 26
+2.  THE GENERATING CAPACITY THAT IS ATTRIBUTED TO EACH RESOURCE. 27
+3.  THE GENERATING CAPACITY THAT IS COUNTED AS A RELIABLE RESOURCE. 28
+4.  ANY PERFORMANCE DATA THAT EXPLAINS A RELIABLE RESOURCE.  29
+5.  ANY COMMISSION REQUIRED CALCULATION, ATTESTATION OR AUDIT. 30
+E.  THE COMMISSION SHALL MAKE EACH REPORT PUBLICLY AVAILABLE UNLESS 31
+THE INFORMATION IS CONFIDENTIAL BY LAW.  32
+F.  IF THE COMMISSION DETERMINES THAT AN ELECTRIC DISTRIBUTION 33
+UTILITY IS NOT IN COMPLIANCE, THE COMMISSION SHALL ORDER A CORRECTIVE 34
+ACTION PLAN THAT ACHIEVES COMPLIANCE AS SOON AS PRACTICABLE AND MAY: 35
+1.  NOT ALLOW COST RECOVERY FOR NEW GENERATING CAPACITY INVESTMENTS 36
+OR CONTRACTS THAT MATERIALLY CONTRIBUTE TO NONCOMPLIANCE. 37
+2.  REQUIRE THAT PROCUREMENT PLANS OR SOLICITATIONS BE MODIFIED. 38
+3.  IMPOSE REASONABLE PERFORMANCE, REPORTING OR ASSURANCE 39
+REQUIREMENTS. 40
+4.  TAKE ANY OTHER ACTION WITHIN THE COMMISSION'S JURISDICTION TO 41
+ENSURE COMPLIANCE. 42
+G.  THE COMMISSION SHALL PRIORITIZE RELIABILITY AND ADEQUACY OF 43
+SERVICE.  44
+House Amendments to H.B. 2331
 
-Introduced by
+-3-
+H.  THE COMMISSION MAY NOT APPROVE OR ALLOW COST RECOVERY FOR
+1
+RESOURCE ACTIONS THAT WOULD REASONABLY BE EXPECTED TO CAUSE THE ELECTRIC 2
+PUBLIC SERVICE CORPORATION'S GENERATING CAPACITY TO FALL BELOW EIGHT-FIVE 3
+PERCENT OF RELIABLE RESOURCES.  4
+I.  THE COMMISSION SHALL ADOPT RULES TO IMPLEMENT THIS SECTION.  THE 5
+RULES MUST INCLUDE: 6
+1.  THE METHOD FOR CALCULATING AN ELECTRIC PUBLIC SERVICE 7
+CORPORATION'S GENERATING CAPACITY AND THE PORTION THAT QUALIFIES AS 8
+RELIABLE RESOURCES. 9
+2.  HOW TO TREAT CONTRACTED RESOURCES, SHARED RESOURCES, CAPACITY 10
+IMPORTS AND RESOURCE ACCREDITATION. 11
+3.  REASONABLE VERIFICATION AND AUDITING REQUIREMENTS. 12
+J.]  [B.] FOR THE PURPOSES OF THIS SECTION: 13
+1.  "GENERATING CAPACITY": 14
+(a)  MEANS THE NAMEPLATE ALTERNATING CURRENT CAPACITY, MEASURED IN 15
+MEGAWATTS, OF ELECTRIC GENERATION RESOURCES THAT ARE OWNED, CONTROLLED, 16
+CONTRACTED FOR OR OTHERWISE RELIED ON BY AN ELECTRIC PUBLIC SERVICE 17
+CORPORATION TO SERVE RETAIL LOAD IN THIS STATE.   18
+(b)  INCLUDES CAPACITY FROM UTILITY-OWNED RESOURCES AND CAPACITY 19
+FROM PURCHASED POWER OR TOLLING ARRANGEMENTS THAT PROVIDE CAPACITY VALUE 20
+TO THE ELECTRIC PUBLIC SERVICE CORPORATION. 21
+2.  "INTERMITTENT AVAILABILITY" MEANS RESOURCE AVAILABILITY THAT IS 22
+PRIMARILY DEPENDENT ON WEATHER CONDITIONS, SOLAR IRRADIANCE, WIND SPEEDS 23
+OR OTHER NATURALLY VARIABLE CONDITIONS BEYOND THE OPERATOR'S CONTROL AND 24
+THAT CANNOT BE DISPATCHED ON DEMAND TO MEET SYSTEM NEEDS AS DETERMINED BY 25
+THE COMMISSION.  26
+[3.  "PERFORMANCE STANDARD" MEANS AN ANNUAL AVAILABILITY OR CAPACITY 27
+STANDARD OR OTHER OBJECTIVE RELIABILITY METRIC THAT IS ADOPTED BY THE 28
+COMMISSION IN RULE AND THAT MEASURES WHETHER A RESOURCE IS CAPABLE OF 29
+BEING AVAILABLE WHEN NEEDED. 30
+4.]  [3.] "RELIABLE RESOURCE" MEANS AN ELECTRIC GENERATION RESOURCE 31
+THAT IS DISPATCHABLE [OR IS CAPABLE OF PROVIDING BASELOAD ENERGY] AND THAT 32
+IS NOT SUBJECT TO INTERMITTENT AVAILABILITY, EXCEPT FOR ROUTINE 33
+MAINTENANCE AND REPAIRS. 34
+[5.  "RESOURCE ACCREDITATION": 35
+(a)  MEANS THE PROCESS OF ASSIGNING A CREDIT TO A RELIABLE RESOURCE 36
+TO DESCRIBE HOW MUCH THE RELIABLE RESOURCE CONTRIBUTES TO GENERATING 37
+CAPACITY AT ALL TIMES.   38
+(b)  INCLUDES THE LOAD CARRYING CAPACITY.] 39
+Sec. 3.  Legislative intent 40
+The legislature intends that this act is necessary for the 41
+convenience, comfort and safety of and the preservation of the health of 42
+public service corporation patrons.  43
+Sec. 4.  Short title 44
+House Amendments to H.B. 2331
 
-Representatives
-  Marshall: Heap
+-4-
+This act may be cited as the "Energy Reliability Standards Act"." 1
 
-AN
-ACT
+Enroll and engross to conform 2
+Amend title to conform 3
 
-amending title 30, chapter 6, arizona
-revised statutes, by adding article 2; amending title 40, chapter 2, article 1,
-arizona revised statutes, by adding section 40-207; relating to energy
-reliability.
+RALPH HEAP
 
-(TEXT OF BILL BEGINS ON NEXT PAGE)
-
-Be it enacted by the Legislature of the State of Arizona:
-
-Section 1. Heading change
-
-A. The chapter heading of
-title 30, chapter 6, Arizona Revised Statutes, is changed from "ELECTRIC
-ENERGY RELIABILITY" to "ENERGY RELIABILITY".
-
-B. The article heading of
-title 30, chapter 6, article 1, Arizona Revised Statutes, is changed from
-"GENERAL PROVISIONS" to "ELECTRIC ENERGY".
-
-Sec. 2. Title 30, chapter 6, Arizona Revised
-Statutes, is amended by adding article 2, to read:
-
-ARTICLE 2. CLEAN ENERGY
-
-START_STATUTE30-821. Public power entities; governing bodies; clean energy;
-definitions
-
-A. A public power entity shall:
-
-1. Use a fuel source that is
-primarily produced domestically.
-
-2. Minimize reliance on foreign
-nations for critical materials or manufacturing when delivering energy to
-customers.
-
-B. If adopting a rule or regulation
-relating to the governing body of a public power entity's internal resource
-planning and procurement decisions, the governing body shall consider whether
-an energy resource is affordable resource energy and a reliable energy source
-and whether the energy that is generated is clean energy.�
-
-C. For the purposes of this section:
-
-1. "Affordable resource
-energy":
-
-(a) Means an
-energy resource that:
-
-(i) Has a
-stable and predictable cost.
-
-(ii) Provides a
-cost-effective means of heating, cooling and generating electricity.
-
-(iii) Delivers
-substantial savings to homes and businesses compared to other resources based
-on the average cost per unit of energy output for the past five years.
-
-(iv) Is readily
-available at all times.
-
-(b) Includes
-energy that is generated by hydrocarbons as a resource.
-
-2. "Clean energy":
-
-(a) Means
-energy that is generated by using a reliable energy source in which the
-emissions are equivalent to the standards set by the North American energy
-standards board for pipeline quality and natural gas.
-
-(b) Includes a
-reliable energy source that:
-
-(i) Releases
-reduced air pollutants.
-
-(ii) Is
-generated by nuclear reactors.
-
-(iii) Is
-generated by using natural gas as a resource.
-
-3. "Reliable
-energy source":
-
-(a) Means an energy resource that meets all of the following
-criteria:
-
-(i) Is readily
-available to meet energy demands at all times with minimal interruptions during
-high usage periods.
-
-(ii) When used
-for power generation, has a minimum capacity factor of fifty percent, has
-electricity output that is dispatchable at all times and has the capability to
-ramp electricity generation up or down within one hour to stabilize the electrical
-grid.
-
-(iii) Has the
-ability to complement and provide backup energy during periods of low
-availability.
-
-(b) Includes
-Energy that is generated by hydrocarbons as a resource.END_STATUTE
-
-Sec. 3. Title 40, chapter 2, article 1, Arizona
-Revised Statutes, is amended by adding section 40-207, to read:
-
-START_STATUTE40-207. Public service corporations; clean energy; definitions
-
-A. A public service corporation
-shall:
-
-1. Use a fuel source that is
-primarily produced domestically.
-
-2. Minimize reliance on foreign
-nations for critical materials or manufacturing when delivering energy to
-customers.
-
-B. If adopting a rule or regulation
-relating to the public service corporation's internal resource planning and
-procurement decisions, the public service corporation shall consider whether an
-energy resource is affordable resource energy and a reliable energy source and
-whether the energy that is generated is clean energy.
-
-C. For the purposes of this section:
-
-1. "Affordable resource
-energy":
-
-(a) Means an
-energy resource that:
-
-(i) Has a
-stable and predictable cost.
-
-(ii) Provides a
-cost-effective means of heating, cooling and generating electricity.
-
-(iii) Delivers
-substantial savings to homes and businesses compared to other resources based
-on the average cost per unit of energy output for the past five years.
-
-(iv) Is readily
-available at all times.
-
-(b) Includes
-energy that is generated by hydrocarbons as a resource.
-
-2. "Clean energy":
-
-(a) Means
-energy that is generated by using a reliable energy source in which the
-emissions are equivalent to the standards set by the North American energy
-standards board for pipeline quality and natural gas.
-
-(b) Includes a reliable energy source that:
-
-(i) Releases reduced air pollutants.
-
-(ii) Is generated by nuclear reactors.
-
-(iii) Is
-generated by using natural gas as a resource.
-
-3. "Reliable energy
-source":
-
-(a) Means an
-energy resource that meets all of the following criteria:
-
-(i) Is readily
-available to meet energy demands at all times with minimal interruptions during
-high usage periods.
-
-(ii) When used
-for power generation, has a minimum capacity factor of fifty percent, has
-electricity output that is dispatchable at all times and has the capability to
-ramp electricity generation up or down within one hour to stabilize the electrical
-grid.
-
-(iii) Has the
-ability to complement and provide backup energy during periods of low
-availability.
-
-(b) Includes
-Energy that is generated by hydrocarbons as a resource. END_STATUTE
-
-Sec. 4. Legislative intent
-and findings
-
-A. The legislature intends
-that this act:
-
-1. Protect the health and
-safety of the public.
-
-2. Preserve the health,
-convenience, comfort and safety of patrons of public service corporations in
-this state pursuant to article XV, section 3, Constitution of Arizona.
-
-B. The legislature finds
-that:
-
-1. Reliance on domestic
-fuel sources is necessary to protect the health, safety and welfare of the
-public.
-
-2. Reducing reliance on
-foreign nations for critical materials or manufacturing is necessary to protect
-the health, safety and welfare of the public.
+2331FloorHEAP4.docx
+02/24/2026
+06:43 PM
+C: SK
+130YMGFKO