AZ HB2574

Allows incorporated cities and towns to form improvement districts for acquiring, installing, and improving energy efficiency and renewable energy systems (solar, combined heat and power) and water conservation improvements (rainwater harvesting, gray water systems) on public or private property.

Permits improvement districts to be formed upon petition signed by all property owners in the proposed district or those subject to assessment, with owners allowed to join before or after district formation by submitting notarized intent to be bound by assessments.

Authorizes assessment of properties in proportion to benefits received, collected through county tax collection procedures, with notice and hearing requirements and objection procedures similar to standard improvement district assessments.

Extends the same improvement district authority for energy efficiency and renewable energy improvements to county improvement districts under section 48-909.03.

Prohibits districts from distributing or transmitting electrical power except for net metering systems, and prohibits cities and counties from requiring participation in such districts as a condition of rezoning, development agreements, or ordinances.