AZ HB2298

Allows municipalities to form improvement districts for acquiring, installing, and improving energy efficiency and renewable energy systems (including solar) and water conservation improvements on public or private property.

Permits improvement districts to be formed based on a petition signed by all property owners in the proposed district or those subject to assessment, with property owners able to join before or after formation.

Assessments for district improvements are levied proportionally based on benefits received and collected using the same methods as general municipal taxes, with due process protections including notice and hearing requirements.

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

Applies the same authorization and requirements to county improvement districts through parallel provisions, establishing that renewable energy and water conservation improvements serve a valid public purpose.