ARTICLE
16 July 2025

Siting Energy And Transmission Line Projects In Arizona

HH
Holland & Hart LLP

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While Arizona's patchwork of jurisdictions creates complexity, early engagement with regulators and careful project design can enable project proponents to navigate these challenges successfully...
United States Arizona Energy and Natural Resources

While Arizona's patchwork of jurisdictions creates complexity, early engagement with regulators and careful project design can enable project proponents to navigate these challenges successfully, particularly given the state's historically pro-development stance.

Five key takeaways from this 2025 Arizona energy siting guide include:

1. New Rules Clarify CEC Triggers

  • A 2023 statutory amendment clarified that only transmission lines with 5+ structures spanning more than one mile at 115kV+ require a Certificate of Environmental Compatibility (CEC).

2. Renewable Mandates Under Attack Despite Market Momentum

  • Commission voted to repeal $3 billion renewable energy standards
  • Major utilities (APS, TEP, SRP) continue pursuing renewable goals independently
  • Market forces may continue driving renewable development, but REST rules may not

3. Federal Land Complicates Project Development

  • Less than 20% of Arizona is privately held—this increases the probability of NEPA triggers
  • Developers spend considerable time and money avoiding or addressing NEPA issues
  • Many project proponents prioritize private lands or State Trust lands to avoid federal triggers where possible

4. Tribal Sovereignty Creates Legal Complexity

  • Excellent resources but complex sovereign immunity and federal trust land issues

5. Navigating Arizona Water Law and Rights Is Tricky

  • Complex groundwater/surface water distinctions vary by geographic location
  • Colorado River shortages are impacting water needs for a range of projects
  • Municipal effluent, a "third category of water," can be an option

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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