The Arizona House Committee on Natural Resources, Energy, and Water has passed House Majority Leader Michael Carbone’s legislation to accelerate the development of small modular reactors (SMRs) co-located with industrial energy users like data centers or uses to replace or expand generation at existing baseload powerplants.
The bill, HB2774, removes bureaucratic obstacles in the way of SMR deployment to meet growing energy needs, streamlining the permitting process for utilities and technology companies with clean, reliable energy.
“We need a bold approach to ensure energy production keeps pace with demand, maintains grid reliability, and supports job growth — especially in rural areas,” said Majority Leader, Carbone. “Small modular reactors offer the ability to repurpose existing facilities, attract new industry, and provide clean, reliable, and affordable power to rapidly-expanding industries that are critical to national defense, like data centers.”
Key Provisions of HB2774:
- For Utilities: Eliminates the requirement for a Certificate of Environmental Compatibility (CEC) when converting an existing thermal unit to an SMR or constructing a new SMR at an existing thermal plant.
- For Large Industrial Energy Users: In counties with a population of 500,000 or less, a new SMR co-located with a large energy user will be exempted from the CEC process and county zoning restrictions.
The legislation encourages private-sector investment and economic development in Arizona. The plan supports the 2025 House Majority Plan to set Arizona’s economic potential, drive energy innovation, and create opportunities for communities impacted by plant closures.
“Rural Arizona will benefit from high-paying jobs, increased capital investment, and a more stable tax base — all while keeping our energy supply reliable and affordable,” Majority Leader Carbone added.
HB2774 is moving to the full Arizona House of Representatives for further consideration.
