Arizona Corporation Commission votes to repeal state’s renewable energy mandate

PHOENIX — Rules that govern how renewable energy sources, such as solar and wind power, are used in Arizona could soon be changing.

The Arizona Corporation Commission (ACC) voted unanimously Thursday to file a notice to repeal the state’s Renewable Energy Standard and Tariff (REST) rules with the state Secretary of State’s Office.

The notice to repeal must be officially filed by Sept. 19.

The ACC oversees public utilities, such as Arizona Public Service Company (APS) and Tucson Electric Power Company (TEP), sets utility rates and makes sure consumers receive reliable service.

What are the REST rules?

The REST rules, which were enacted in 2006, require utilities to get an increasing portion of their power supplies from renewable sources.

The companies were required to get 15% of their power from environmentally-friendly sources by this year, a mark APS (19%) and TEP (29%) have exceeded, according to the ACC.

Even though commissioners are calling for the REST rules to be repealed, they do not believe that this will be the end of renewable energy in Arizona.

“The idea that the deployment of renewables in Arizona will come to a halt if REST is repealed is doom and gloom fear-mongering at its worst,” ACC Chairman Kevin Thompson said in a press release Thursday.

While Commissioner René Lopez questioned whether parts of the REST rules could be retained with respect to Renewable Energy Credits and reporting requirements, he ultimately voted in favor of continuing the process of filing the notice to repeal the rules.

“We will be treating all forms of power generation equally and renewable sources will be able to stand on their own,” Lopez said in the release. “I continue to believe that even without the REST rules, renewable energy is and will continue to be an integral part of Arizona’s diverse energy portfolio going forward.”

How is ACC justifying ending renewable energy mandate in Arizona?

To justify their case, the ACC highlighted the Solana Generating Station, a solar power plant near Gila Bend. It argued that cases like this have contributed to surcharges totaling over $2 billion on power bills across Arizona over the past 19 years.

The facility began generating power in 2013 and came to an agreement to sell its power to APS for $0.13 per kilowatt-hour (kWh) generated, the ACC release stated.

However, this is above the norm for APS, which pays an average of $0.02 to $0.03 per kWh generated from other sources, according to the ACC.

Sierra Club calls for renewable energy mandate to remain in place

Advocates for the REST rules staying in effect say the rules have led to $12 billion in investments in renewable energy in Arizona and a 3% reduction in greenhouse gas emissions in the state.

A press release from the environmental group Sierra Club says Arizona has gained $2 billion in public benefits. These come from using less expensive energy sources instead of coal and natural gas, investing in local businesses, lowering technology costs and reducing air pollution.

“The commission’s misguided and short-sighted efforts to repeal the Renewable Energy Standard and Tariff rules will harm our air, our water, and our health,” Sierra Club Grand Canyon Chapter Director Sandy Bahr said in the release.

“These rules have helped to support significant development of clean, affordable energy sources like solar and wind, which are now among the lowest-cost power sources in Arizona. Clean energy provides thousands of jobs and huge economic and health benefits for our communities,” Bahr added.     

How the public can comment on possible end to renewable energy mandate

There will be three opportunities for the public to speak about the possible repeal of the REST rules. The first will be held on Nov. 10 in Tucson, followed by a comment session held over the phone on Nov. 12 and a second in-person meeting in Phoenix on Nov. 13.

Written comments can also be submitted on the ACC website until Nov. 14.

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