AZ HB2816

Amends Arizona law to allow improvement districts to be formed for acquiring, installing and improving energy efficiency, renewable energy, water conservation and water resource management improvements including solar energy systems, rainwater harvesting equipment and gray water systems on public or private property.

Permits improvement districts to be formed by petition signed by all property owners in the district or those subject to assessment, or by governing body resolution after public hearing, and allows property owners to join districts after formation by submitting a notarized petition.

Establishes that annual expenses of such districts shall be assessed on properties in proportion to benefits received, with assessments collected using the same procedures as municipal taxes, including enforcement and delinquent tax sale provisions.

Prohibits districts formed under this section from distributing or transmitting electrical power except for net metering systems allowed under applicable rules, tariffs or federal law.

Prohibits cities and towns from requiring participation in these districts as a condition of rezoning, development agreements, or ordinances.