PHX Reporter

The Arizona House Committee on Natural Resources, Energy, and Water has approved legislation proposed by House Majority Leader Michael Carbone to expedite the development of small modular reactors (SMRs). These reactors are intended to be co-located with large industrial energy users such as data centers or used to replace or expand generation at existing baseload power plants. The bill, presented as a strike-everything amendment to HB2774, aims to eliminate bureaucratic obstacles hindering SMR deployment. This move is expected to streamline the permitting process for utilities and large technology companies seeking clean and reliable energy sources.

"This bill is a win-win for Arizona’s energy future and rural communities," said Majority Leader Carbone. "We need a bold approach to ensure energy production keeps pace with demand, maintains grid reliability, and supports job growth—especially in rural areas. Small modular reactors are a game-changer. They 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 include eliminating 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. Additionally, in counties with populations of 500,000 or less, new SMRs co-located with large energy users will be exempt from the CEC process and county zoning restrictions.

The legislation aims to position Arizona as a leader in next-generation nuclear energy by encouraging private-sector investment and economic development in regions most in need. This aligns with the 2025 House Majority Plan's goals of driving energy innovation and creating opportunities for communities affected by plant closures.

"With rising energy demand and national security concerns, we cannot afford to sit back and wait. This bill puts Arizona in the driver’s seat of the next great era of American energy innovation," added Majority Leader Carbone. "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."

HB2774 now proceeds to the full Arizona House of Representatives for further consideration.

Information from this article can be found here.