Blog For Arizona

Public Hearing to be Set on Net Metering - Arizona’s Rooftop Solar Industry Hangs in the Balance

by Will Greene

Much of what happens at the Arizona Corporation Commission occurs behind closed doors and that is why transparency won a rare victory on Friday when Commissioner Susan Bitter Smith requested a broader public hearing on the crucial matter of net metering.  The date for the hearing is still to be determined.

Net metering grants consumers the ability to feed excess electricity generated from rooftop solar systems to the grid – and to be fairly compensated for that electricity.  Without this agreement, a residential and commercial solar industry would not exist in Arizona, and the only solar on the grid would be utility-owned centralized generation.

Arizona Public Service, the state’s largest electric utility, is questioning the value of the electricity consumers are contributing to the grid, arguing it needs to be substantially lower, as indicated in a recent much-maligned My Turn by APS CEO Don Brandt. 

Arizona Leads the Nation in Global Warming Belief

by Will Greene

86 percent of people surveyed in Arizona during the past decade believe that global warming has “probably been happening”, the highest level of any state in the nation.  This finding was highlighted in a nice piece yesterday in Politico. 

Conventional political wisdom in Arizona has held the climate issue as one to avoid, for fear of alienating wide swaths of the public and thereby damaging carbon-cutting strategies or clean energy progress. Those who advocate for sustainability often squirm from talk of climate, opting for a focus on clean energy jobs or the health effects of air pollution.  In April I urged a reconsideration of this logic (read: Clean Energy Advocates Must Find the Courage to Talk Climate) arguing that by avoiding climate change, advocates are surrendering their most compelling talking point, considering the fact that worst-case climate projections bring the very livability of our state into question. 

Conventional political wisdom appears to have been dead wrong according to these numbers, produced by Jon Krosnick, a senior fellow at the Stanford Woods Institute for the Environment.  Krosnick has compiled state-by-state results from about a dozen surveys he has conducted in partnership with media outlets over the past five to 10 years.

Probably thanks to the fact that warming has been more pronounced in the US Southwest than in other parts of the country, the public is connecting the dots between constant record-breaking temperatures and the widely understood greenhouse effect.

Just as the Arizona public is ahead of our elected officials in energy outlook (read: Public Opinion on Energy Shows How Out-of-Touch AZ Politicians Are), the public also appears to be well out front of our “leaders” on climate change.

Corp Comm Field Filling Up – Energy Expert Nancy LaPlaca and Rep. Frank Pratt Exploring Runs

by Will Greene

Word might be getting out.  The Arizona Corporation Commission, widely regarded as a lower-tier agency in terms of attention, is receiving heavy interest from a bevy of candidates eying its two open seats in 2014.  Fifteen months before any voting will take place, five candidates have formed exploratory committees, with more likely on the way.

Ryan Randazzo reported Tuesday night that Republican state Rep. Frank Pratt, who chairs the Energy and Natural Resources Committee, announced his intention to run.

“As a Corporation Commissioner, I will focus on a balanced energy portfolio that provides clean, reliable energy at the lowest possible price,” Pratt said in a statement. “We must use all forms of energy including solar, nuclear, wind, coal, natural gas, hydroelectric and other emerging and proven technologies.”

Nancy LaPlaca, a former policy adviser at the ACC, is exploring a run according to her campaign facebook page.  LaPlaca will likely stress her vision for a solar future in the state and her years of experience dealing with complicated energy regulatory issues.

Public Opinion on Energy Shows How Out-of-Touch AZ Politicians Are

by Will Greene

Public sentiment towards energy in Arizona is straightforward and consistent.  Repeated surveys portray an unabashed support for solar energy and a strong desire for a transition from fossil energy sources among members of the public.

Highlights of a few recent opinion studies:

2013 Colorado College “Conservation in the West Poll” conducted by Fairbank, Maslin, Maullin, Metz & Assoc. and Public Opinion Strategies: 

-“Sixty-two percent (62%) of voters say that it (solar) is the first source of energy they would encourage the state to use more of. No other power source was the first choice of more than 40% in any of the other Western states we surveyed.”

2013 Public Opinion Strategies Poll (conducted by a Republican pollster): 

-“A Republican elected official who voted to end the solar power program would also be putting him or herself at risk in a primary, as 60% of Republican primary voters said they would be less likely to vote for a candidate who voted to end the program.”

-“When asked which of many sources of energy they would MOST want to encourage the use of in Arizona, more than half (52%) of voters say solar power, making it far and away their top choice. Among just Republican primary voters, solar power again easily tops the list, with 40% of Republican primary voters saying they most want to encourage the use of solar power, followed by natural gas at 19%, nuclear at 14%, energy efficient efforts at 6%, oil at 5%, wind power at 5%, and coal at 4%.” (emphasis added)

Brenda Burns Declines ACC Reelection Bid

by Will Greene

Ryan Randazzo of the Arizona Republic is reporting that Arizona Corporation Commissioner Brenda Burns will not seek a second term at the ACC, Arizona’s utility-regulatory body.  Burns was elected in 2010 along with Commissioner Gary Pierce, and since that time has been viewed by many as an actively anti-solar commissioner. 

Burns’ legacy to Arizona’s energy system will include a May 2012 amendment that added a new fee for families and businesses planning to install solar, amounting to monthly charges of $3.85 for residential customers, $13.71 for small businesses, $142.44 for large businesses, and $427.33 for industrial customers who install solar.

Burns supported the controversial trash incinerator proposal that allowed a Mohave County utility to count the burning of trash as renewable energy.

More recently, she voiced immediate support for Commissioner Gary Pierce’s brief flirtation with lowering Arizona’s Renewable Energy Standard (REST), and consistently voted to eliminate solar incentives ahead of schedule, including January's complete elimination of rebates for commercial solar systems.

This news leaves two seats ‘up for grabs’ in 2014 as Pierce terms off the body.  Two Republicans and one Democrat have thus far filed ACC exploratory committees, indicating their interest in the seats.

Rep. Sinema’s First Bill Displays Energy Leadership – and Political Wisdom

by Will Greene

Rep. Kyrsten Sinema (D-Ariz.; District 9) introduced her first piece of legislation last week, a bill intended to incentivize clean energy manufacturing in the United States.  The Security in Energy and Manufacturing Act (H.R. 1424) would extend the advanced energy manufacturing tax credit program, providing a 30% tax credit or grant in lieu of a tax credit, to domestic companies manufacturing renewable energy systems.

While the political makeup of the US House likely makes Sinema’s bill a tough sell to a Republican-controlled Energy & Commerce Committee, let alone House membership at large, clean energy advocates can be encouraged that in 2012 the Arizona delegation added a well-spoken ally.  Sinema’s voice is especially welcome considering the recent subtraction of a key solar proponent in Rep. Gabby Giffords.

Two New Republicans Testing 2014 Arizona Corporation Commission Waters

by Will Greene

State Representative Carl Seel R-Phoenix and Prescott radio soundboard operator Christopher Campbell have formed exploratory committees, the first step in making a run for the Arizona Corporation Commission (ACC).  Candidates will be vying for two seats on the critical utility regulatory board in 2014, with Commissioner Gary Pierce terming out and Commissioner Brenda Burns presumably running for re-election.

Seel is known for his opposition to Arizona’s Renewable Energy Standard (REST), the passage of which in 2006 set the stage for a solar industry in Arizona.  The REST sets a minimum percentage of electricity (15%) that monopoly utilities must incorporate into their portfolio by a certain date (2025).  APS is on track to fulfill their REST requirements a decade early, with negligible ratepayer impact. 

Gammage Gets it Wrong

by Will Greene

Nearly every actively publishing climate scientist in the world – the folks who wake up every day and go to work studying our climate system – has concluded that humanity’s release of heat-trapping greenhouse gasses is changing our planet in a dramatic and essentially permanent way.  Comparable periods in earth’s history where change occurred this rapidly coincided with extinction events of many species habiting the planet at the time.

That is why Arizona’s thought-leaders like Grady Gammage Jr. do our state a disservice when they publish “cooler-heads-prevailing” articles, such as Gammage’s spread in this Sunday’s Arizona Republic entitled “Phoenix’s Bright Future”.

Clean Energy Advocates Must Find the Courage to Talk Climate

by Will Greene

Climate change is poised to whip Arizona in the 21^st century.  On a higher-emissions track experts with the US Global Change Research Program warn of an eight to ten degree Fahrenheit increase in average annual temperature in the US Southwest this century.  Imagine the hottest Phoenix summer day and add ten degrees to it.  Think of the Phoenix economic development pr consultant trying to spin this type of heat.  “Come to Phoenix, you’ll have a scorchingly good time!”

Aside from the blistering temperatures confronting anyone who ventures outside (or is forced outside due to poverty) this could mean the loss of vital reservoirs such as Lake Powell and Lake Mead, dust-bowl-like conditions straining agriculture and ranching, constant “haboob” storms, worsening fire seasons making 2011’s record Wallow fire seem minor, and potentially devastating migration issues due to uncertainties as folks south of the border deal with similar issues.  The Bureau of Reclamation recently told us we can expect dramatically reduced Colorado River flow thanks to snowpack loss in the Rocky Mountains, increased evaporation, and population stresses, equating to a gap between water supply and demand of 3.2 million-acre-feet by 2060.  That is roughly five times the amount of water Los Angeles uses in a year.  Arizona’s ability to sustain itself is literally being called into question.

Arizona Republicans Mobilizing Behind Solar

by Will Greene

“I don’t think it has anything to do with politics or philosophy.  I don’t know that you have to belong to a certain belief to want to do something for the earth.” – Barry Goldwater Jr., AZ Republic – March 28, 2013.

We’ve known for years - it is hard to find a concept bringing more Arizonans together, regardless of political affiliation, than our state leading the way on solar energy (see here, here, here, and here).  Now Arizona Republicans have a rock star flag-bearer ready to make sure the Arizona Corporation Commission (ACC) does not compromise progress already made to develop an industry of the future.

Ryan Randazzo reported yesterday that former Republican Congressman Barry Goldwater Jr. is teaming up with publicist Jason Rose to defend and grow Arizona’s solar industry.  Goldwater’s acknowledgment of the attendant benefits solar brings to the state, such as improved health and conservation of resources, shows he and Rose will not exclusively focus on the substantial economic opportunity solar energy represents.  It remains to be seen how personally engaged Goldwater will become in ACC proceedings. 

Jim Holway Eying a Run for Arizona Corporation Commission

by Will Greene

Jim Holway, a prominent advocate for water sustainability has indicated interest in a run for the Arizona Corporation Commission in 2014 according to jimholway.com.  This would make him the first non-incumbent 2014 ACC candidate to form an exploratory committee.  Two seats are open in next years mid-term contest, with Commissioner Gary Pierce terming off the Commission, and Commissioner Brenda Burns presumably running for re-election assuming she doesn’t throw her hat in for a different post.  The 2014 general election is 20 months away.

Holway was elected to represent Maricopa County on the Central Arizona Water Conservation District Board in 2010 receiving an Arizona Republic endorsement and an impressive vote haul. 

He is formerly the Director of the Western Lands and Communities program, a Professor of Practice in the School of Sustainable Engineering and the Built Environment at Arizona State University, the ASU Coordinator for the Arizona Water Institute, and Assistant Director of the Arizona Department of Water Resources.

Conservative Blog Editor Stands Up for Solar, and Competition in AZ’s Energy System

by Will Greene

Sonoran Alliance is perhaps Arizona’s best-known conservative blog, taking a tea party slant on most issues (most recently calling out “Brewercrats” in a post – their term for Republicans who support Governor Brewer’s plan to accept federal Medicaid funds).

In a demonstration of something we already know (see APS/Morrison Public Perception Study, other studies here, and here), a recent post by Sonoran Alliance's creator and editor Shane Wikfors poignantly reveals just how deep Arizona’s bipartisan support for solar extends.  It is a must-read.

“The hypocrisy is Republican policymakers wax eloquently about the evils of subsidizing solar energy but shrink from criticism when confronted about massively subsidizing corporate monopolies like APS. It’s time for Republicans to be intellectually consistent and reject corporate welfare policies altogether.”

Addressing the impending Corporation Commission review of net metering, Wikfors adds,

“Eliminating net metering would kill the flourishing residential solar market here in Arizona thereby eliminating consumer choice for Arizona energy consumers.  Does Commissioner Gary Pierce really want to take credit for this – eliminating consumer choices – especially in Arizona where sunshine is as much a commodity as oil is in the Middle East?”

There Was a Time When it Wasn't Just Dems Leading the Way on Climate in AZ

by Will Greene

Southern Arizona Rep. Raul Grijalva once again schooled his House colleagues on what climate leadership looks like in a floor speech this afternoon.

“Climate change is real.  It is not a problem that will go away.  We cannot ignore it.  We have to face it head on, and not bury our heads in Canadian tar sand.”

Watch the speech:

 

Beltway wisdom that stigmas congressional climate action as improbable, does not exempt every member of Congress from a moral obligation to fight for action until his or her head turns blue.  Rep. Grijalva understands this, as do more and more of his colleagues, such as those in the “Safe Climate Caucus” who made a commitment this year to “talk every day on the House Floor about the urgent need to address climate change.”

Renewable Energy Standard Successfully Defended

by Will Greene

Despite repeated assurances during the 2012 political campaign that Republicans at the Arizona Corporation Commission (ACC) would not roll back Arizona’s Renewable Energy Standard (REST), it appeared likely they would do just that only three months after taking their oath of office. 

Arizona’s REST sets the minimum percentage of electricity that our state’s investor owned utilities must produce from renewable energy by a certain date (15% by 2025).  It is the primary policy mechanism driving the emergence of a solar industry in Arizona.  Thanks to this policy commitment, thousands of Arizona’s citizens are employed in an exciting industry, our air is cleaner, our grid is more resilient, we are importing less fuel from out-of-state, and Arizona’s contribution to global climate change has decreased.

In January Commissioner Gary Pierce introduced a surprise amendment to bring the REST down to 13.5%, despite the change equating to pennies worth of savings for average ratepayers.  This would have amounted to a 11% decrease in Arizona’s future renewable energy capacity.

BREAKING NEWS - Plan to Decrease Renewable Energy Standard Dies

by Will Greene

Court Rich, a solar industry attorney close to the Arizona Corporation Commission (ACC) tweeted today, with another source confirming, that a plan by Commissioner Gary Pierce to decrease Arizona's Renewable Energy Standard (REST) will not move forward. More details to follow.

 

Ammunition for Solar Advocates

by Will Greene

A few weeks ago I asked clean energy advocates to make external costs a mantra.  The concept of external costs is simple - when utilities and power plant owners dump pollution into our air and atmosphere for free, they “externalize” costs to the hardworking taxpayer- who pick up the tab in the form of hospital bills, asthma medication, lost work days, premature death, climate chaos ect.  The process allows utilities and fossil fuel industry players to offer artificially low prices for their electricity and to (literally) make a killing from coal and natural gas.  This fundamental economic dynamic means coal is the most subsidized form of electricity known to mankind.

While the external cost argument is a panacea for clean energy advocates, it is actually mostly unnecessary in Arizona thanks to our abundant sunshine.  We now know, thanks to a comprehensive report by Arizona Public Service (APS), that electricity from solar pv is substantially cheaper than electricity from coal and nuclear, while cost-competitive with electricity from natural gas - even without including external costs in the discussion.

 

Source: APS 2012 Integrated Resource Plan

 

Get Involved in the Fight for a Livable Future

(You can find your local 350.org climate-action strategy session by clicking here)

by Will Greene

An Illinois farmer this July. 2012 was the hottest year ever recorded in the US.

So many crucially important political dramas face our state and nation.  A significant segment of our population lives in fear of arrest and deportation as the immigration debate rages on.  In the civil rights struggle of our time, LGBT citizens face injustice and persecution.  American men and women are still dying in Afghanistan, along with an untold number of innocents around the world thanks to America’s ongoing drone war.  Our nation struggles to comprehend how we can help avert tragedies like Newtown, Connecticut.  America’s debt spirals out of control, with future generations most likely to be left holding the bag.

These are urgent problems that call for decisive action.  But in a few short decades they will all be mere afterthoughts if we don’t address a climate crisis that is unraveling the very livability of our planet.

The overwhelming judgment of science has determined that a status-quo climate emmissions scenario means, in my generation’s lifetime, we risk creating the following:

• The hottest temperatures earth has seen in 30 million years.
• Sea level rise of 3-6 feet.
• Drought over 40% of inhabited land.
• Hundreds of millions of refugees.
• Half of all known species extinct. 

Rep. Barber Comes Out Swinging for Solar (Update: Barber Recommits to Coal at Apache Generating Station)

by Will Greene

Finally, a high profile political figure is paying attention to Arizona Corporation Commissioner Gary Pierce’s impending dagger-in-the-back plan to cripple our state’s burgeoning solar industry.

US Rep. Ron Barber has penned an excellent op-ed in the Arizona Daily Star.  Read it in full here.

Some highlights:  “Is there such a thing as too much solar power? Are too many individuals and businesses putting solar panels on their roofs? Is it time to call a halt to the burgeoning solar energy industry, shut down all those profitable solar companies and find more ways of generating electricity from coal and other nonrenewable forms of energy?  That's backward thinking. But that's the future that the Arizona Corporation Commission envisions as it proposes to take a giant step into the past and discourage Arizonans from installing solar panels.”

“Both TEP and APS have done a commendable job of expanding their renewable energy portfolios - and this should be supported, not punished. Meanwhile, look what neighboring states have done: Colorado has a 30 percent standard by 2020. California has a 33 percent renewable standard by 2020 and says it will meet that by a "comfortable margin." But the ACC move will send employment plunging in the renewable energy field.”

A few months ago I asked, what can environmentalists expect from Rep. Barber?  The prognosis was worrisome as the Southern Arizona Rep had just wrote to the Environmental Protection Agency touting his hope that Apache Generating Station, Southern Arizona’s largest single source of air and climate pollution, “remain viable well into the future.”

Today, we need to thank Barber for heightening the level of attention on Commissioner Pierce’s amendment to decrease Arizona’s renewable energy targets.  Tomorrow, we need to hold his feet to the fire about Apache Generating Station, as well as the burning of coal at Tucson Electric Power’s H. Wilson Sundt Generating Station on Irvington Road, only yards from a neighborhood and school.

His op-ed in the Star is a fantastic sign that Barber is coming around on Arizona’s need to transition from coal to solar.  To display true solar leadership and concern for the global climate crisis, Barber needs to promote a comprehensive plan to move TEP aggressively away from coal, and support an end to the devastating air and climate effects of Apache Generating Station.

(Update - 4:30 pm)

In a story posted by PennEnergy, Rep. Barber's District Director Jessica Floyd toured Apache Generating Station today with regional administrator for the EPA Jared Blumenfeld, and an ADEQ official.  In a letter sent to EPA Acting Administrator Bob Perciasepe, Barber restated his hopes of keeping Southern Arizona's largest single source of air and climate pollution open indefinitely.

“I am writing to urge your continued cooperation with Arizona Electric Power Cooperative (AEPCO).  I appreciate the consideration that your agency has showed thus far in meeting with me and representatives of AEPCO to discuss potential resolutions to ensure the Apache facility remains viable into the future,” Barber added.

This throws some cold ice on hopes Barber was coming around with his energy vision.  While calling out the ACC in today's Star op-ed was an inspiring moment, the continued addiction to coal in Southern Arizona (TEP's portfolio is 80% coal-fired), and Barber's support of this status quo, should be enough to bring clean energy advocates back down to earth.

Study: Lake Powell and Mead Could Disappear in a Few Decades Due to Climate Change

by Will Greene

Scientific literature regarding the future of water in the Southwest up to this point has been alarming, yet vague.  In general, studies have confirmed that rising temperatures will hit the Southwest hard, with water availability shrinking significantly.  Uncertainties related to the degree to which changes will affect evaporation and precipitation have stopped scientists short of making headline-generating predictions.

That changed this week with the release of a new study by researchers at Colorado State University, Princeton, and the U.S. Forest Service that provides rare specifics as to how climate change may affect key reservoirs such as Lake Powell and Lake Mead that feed the Colorado River and therefore the Central Arizona Project (CAP).  The study presented a number of varying scenarios dependent upon levels of greenhouse gas emissions and population stresses.  One scenario details a dire future in which “Lakes Powell and Mead are projected to drop to zero and only occasionally thereafter add rather small amounts of storage before emptying again.”

“We were surprised to find that climate change is likely to have a much greater effect on future water demands than population growth,” Forest Service research economist Tom Brown, who led the study along with CSU’s Jorge A. Ramirez, told Summit County Citizens Voice. “The combined effects of climate change on water supply and demand could lead to serious water shortages in some regions.”

Solar Exec Calls AZ Utility “probably the most aggressive anti-solar utility in the country”

by Will Greene

Arizona’s electric utilities have done a terrific job applying a shiny green layer of paint over their fossil-based business model.  Relentless advertising and sponsorships (funded entirely by captive ratepayers) feature energy efficiency and solar programs – programs that would not exist absent requirements from the Arizona Corporation Commission.

That is why many ratepayers might be surprised by the recent comments of Ed Fenster, the CEO of SunRun, an industry-leading provider of solar lease programs that have allowed more Americans than ever to participate in the new-energy economy. 

"Utilities are very aggressive about it because they've never faced competition and they have always earned riskless profit," said Fenster. "Arizona Public Service (APS), probably the most aggressive anti-solar utility in the country, sent a notice to customers that said because people are recycling their refrigerators and installing CFLs we need to raise your rates."

EPA’s Coal Facility Proposal is Shortsighted

by Will Greene

Navajo Generating Station (NGS) in Page, Arizona is the West’s largest source of greenhouse gas emissions and air pollution, causing the deaths of an estimated 16 northern Arizonans every year, with 25 heart attacks, 11 cases of chronic bronchitis, and 15 asthma ER visits to its credit for good measure.

The 40-year old coal powered behemoth runs the CAP canal pumps, and provides a steady source of revenue and jobs to the Navajo and Hopi nations.

While the devastating effects of its air pollution are startling, even more insidious is NGS’s contribution to the long-term threat of climate change.  Every in-depth look at the expected impacts of climate change on the southwest point to severe and permanent drought (think dust bowl), unbearable heat (add 5-10 degrees to the hottest Arizona summer days), and crippling fire seasons (see here, here, here, and here for a taste of references).  There can be no doubt that dramatically reducing our contribution to climate change is in Arizona’s long-term interest, especially considering we have relatively affordable alternatives available.

5,000 Arizonans Condemn Corp Comm Attack on Clean Energy

by Will Greene

The Arizona Corporation Commission (ACC) is receiving an uncommon level of attention following the introduction of a plan by Commissioner Gary Pierce to decrease Arizona’s Renewable Energy Standard (REST), as well as the recent gutting of solar incentives by the agency.

The national organization CREDO Action set up a petition asking Commissioners to halt their “rollbacks of Arizona’s clean energy rules” which are “bad for the economy and bad for the environment."   The petition also asks the ACC to “work to reduce the state’s reliance on dirty coal, rather than attacking Arizona’s solar industry.”

The petition quickly gained over 5,000 signatures with hundreds accruing each day since its release.

Effort to Decrease Renewable Energy Standard Advances to Hearing

by Will Greene

In one of the more shocking moments at the Arizona Corporation Commission (ACC) in recent memory, Commissioner Gary Pierce introduced an amendment one-week ago-Wednesday that would effectively bring Arizona’s Renewable Energy Standard (REST) under 13.5% (it is currently set at 15% renewables by 2025).

The amendment, referred to by one solar official as the most significant policy setback for Arizona’s solar industry in years if passed, was released to the public only one hour before Pierce introduced it for consideration.  Before a vote could occur, ACC legal council warned the amendment was legally questionable, and it was tabled until a procedural conference on February 14^th with a hearing to follow. 

 

Two attendees at Wednesday's rally.

 

A Call to Action – Solar in Arizona (and Therefore Our Environment) Needs YOU

by Will Greene

There’s no need to parse words - Arizona’s solar future and our environment are under attack at the Arizona Corporation Commission (ACC).  As I posted on Friday, (read: Gary Pierce Attempts to Put Renewable Energy Standard on the Chopping Block) Commissioner Gary Pierce has introduced an amendment to decrease the Renewable Energy Standard (REST) by waiving a significant portion of electricity from REST compliance. 

Yesterday, Ryan Randazzo of the Republic wrote (read: Officials Consider Altering Mandate) that Pierce’s plan would reduce the amount of renewable energy APS needs to procure by 11%.  According to a solar industry official, Pierce’s amendment would be the most significant policy setback for Arizona’s solar industry in years.

You can email or call your five Corporation Commissioners and let them know how you feel about Pierce amendment #2 in the APS REST plans that will cut solar by 11% and effectively decrease the REST below 13.5%.

Gary Pierce - (602) 542-3933 – pierce-web@azcc.gov

Brenda Burns –  (602) 542-0745 – burns-web@azcc.gov

Bob Stump - (602) 542-3935 – stump-web@azcc.gov

Susan Bitter-Smith - (602) 542-3625 – BitterSmith-web@azcc.gov

Bob Burns - (602) 542-3682 – Rburns-web@azcc.gov

For reference, the docket number is E-01345A-12-0290.

Gary Pierce Attempts to Put Renewable Energy Standard on the Chopping Block

by Will Greene

In a stunning turn of events at the Arizona Corporation Commission (ACC) Wednesday, Commissioner Gary Pierce introduced an amendment that would effectively decrease Arizona’s Renewable Energy Standard (REST) from 15% to 13.5%.

Neighboring states Nevada, New Mexico, Colorado, and California all have (far) more aggressive renewable energy targets than Arizona.  Commissioner Pierce’s amendment could put an icy chill on efforts to make Arizona a leader in renewable energy, and send a clear signal that this new set of Commissioners intends to put the brakes on the transition to clean, renewable sources of electricity.  The state sits at 24^th in the nation in percentage of electrons created from renewable sources, although that figure should improve some in 2014 when Gila Bend’s Solana Generating Station comes online.

Commissioner Pierce introduced the amendment which would have excluded electricity sales to large retail customers in the calculations that determine REST compliance.  Before a vote could be taken on the amendment, ACC legal council informed Commissioner Pierce that the amendment would need closer examining due to possible rules violations.  The amendment was tabled, but not before Commissioner Brenda Burns voiced her support for the idea.

Commissioner Pierce presented the amendment as a way to decrease costs for residential ratepayers, who currently pay under $4/month to fund solar rebates.  On average, 2% of a ratepayer's electric bill pays for renewable energy (most of which is spent to build solar in Arizona), while roughly 30% is spent to import conventional fossil fuels from other states. 

A recent APS/Morrison study found that 90% of customers support a state renewable energy standard, which sets a minimum percentage of electricity (15%) that Arizona utilities must produce from renewable sources by 2025. Commissioner Pierce’s amendment will be deliberated at an upcoming hearing at the ACC.

 

Grijalva Pick for Interior Would Represent a Welcome “Green” Turn for President Obama

by Will Greene

With Interior Secretary Ken Salazar stepping down in March, over 200 environmental groups have sent a letter to President Obama urging the nomination of Rep. Raul Grijalva to lead the federal agency that manages public lands, resources, and Native American issues.

A Grijalva pick could indicate an altered energy course for President Obama, who in 2008 ran as a candidate skeptical of new oil and gas drilling, but has since adopted an “all of the above energy strategy” touting in the 2nd presidential debate that under his administration "we’ve built enough pipelines to wrap around the Earth once.” 

If “all of the above” sounds familiar, that’s because it is the exact same position taken in the Republican national platform.  The difference is the President actually means it, while Republicans tend to fight all support for renewable energy, while backing subsidies for oil, gas, and coal exploitation.

Secretary Salazar leads an Interior Department that has aggressively exploited fossil fuels, with American oil production at an eight year high.  Salazar, under the direction of Obama, has also been a friend of the coal industry, opening 7,400 acres of public lands for coal mining in a 2011 decision that was termed “disgraceful” by climate movement-leader Bill McKibben.  The Interior Department has also protected a record-low amount of public lands compared to the last four administrations.  Far less land has been protected under President Obama than during the Reagan, G.H.W. Bush, Clinton, and G.W. Bush administrations.

It’s not all bad news under Salazar and Obama’s leadership.  More than 10,000 megawatts of renewable energy has been permitted on public lands, far more than all previous administrations combined.  But for citizens concerned about climate change, Interior Department policy has been a disappointment during Salazar’s tenure.

That is why the nomination of environmental champion Rep. Grijalva would be a welcome sign that the administration intends to live up to the words spoken by President Obama at his first inaugural.  “This was the moment when the rise of the oceans began to slow and our planet began to heal.”

Given President Obama's “fossil fuel boasting” in the recent presidential debates, and his policy of “drill baby drill” during Salazar's tenure, it seems unlikely a climate leader of the caliber of Rep. Grijalva will get the nod.

The author is engaged in a multi-week project promoting climate action, and will be blogging from the road.  You can follow the project and get involved at greenevoteproject.org.

External Costs Need to Become a Mantra for Environmentalists

by Will Greene

The fight for the planet will take place in the policy arena in the first half of the 21^st century, with the ramifications (also known as greenhouse gas emissions) of our success or failure dramatically altering the planet much longer than that.  It’s appropriate to point out - we are currently on a failure track, and engines are at full speed.

Every aware citizen, or at least those who wish to move the needle of public opinion in a positive direction rather than simply bemoan our dark future, should hammer home the concept of external costs and use this economic concept as solid reasoning for aggressive climate action.

An external cost, or a ‘negative externality’, occurs when producing or consuming a good or service imposes undesired costs on a third party.  When we fill up our gas tanks a transaction is made between the consumer and the seller.  The consumer “internalizes” the price of the gas and the gas tax.  Other costs, such as the increased healthcare costs for a third party resulting from their inhalation of the pollution from the buyer’s tailpipe, is an example of an external cost.  A family living near a major freeway experiences negative externalities on a daily basis as they inhale foiled air resulting from a transaction they had nothing to do with. The external costs of burning just coal alone in the United States is estimated at $345 billion annually by a recent study out of Harvard’s Center for Health and the Global Environment.  If these impacts, mostly health and environmental, were included in the price of coal, it would be among the most expensive energy sources (under current accounting systems that disregard health and environment, coal is among the cheapest sources).

Economists refer to this phenomenon as a “market failure” because decisions made by consumers and sellers do not account for the full costs of the transaction, and are therefore inefficient.  Perhaps no other line of reasoning can more effectively articulate the concerns of environmentalists and health experts in terms that cause politicians and business leaders to perk up - monetary terms.

If any concept holds the key to a clean energy future, it is the monetization of externalities. It represents a compelling economic argument for why clean energy is (by far) the cost effective choice right now.  And it is not a narrative created by tree hugging hippies (I call them heroes) - it is a concept taught in every Macroeconomics 101 course.

If energy regulators, such as those at the Arizona Corporation Commission (ACC), considered all costs by accounting for externalities, resource-planning decisions might look dramatically different.  Deals that increase the use of coal by Arizona’s utilities, such as the recent acquisition of two Four Corners Coal Station units by Arizona Public Service (the deal was approved by the ACC), would likely not occur or be shot down by Commissioners as not economical.

In 2010 former Democratic Commissioner Paul Newman introduced rules that granted Commissioners and advocates the ability to submit data that put a monetary value on external costs when considering ACC proposals.  The initiative, spearheaded by Commissioner Newman’s policy adviser Nancy LaPlaca, did not mandate that externalities be monetized, only that they be considered if introduced.  Many state utility commissions have since replicated Newman’s amendment. 

The amendment brought external costs to the forefront at the ACC, although current Commissioner Gary Pierce has since vowed to vote “no” for any proposals that include greenhouse gasses as an externality.  We do not yet know where new Commissioners Bob Burns, and Susan Bitter-Smith stand on the issue of climate change and external cost accounting, although they, and other incumbent Commissioners Brenda Burns and Bob Stump, are not expected to champion accounting for external costs.

Climate change is of course the whopper of external costs, as the billions (or trillions) needed to adapt to rising sea levels, encroaching drought, disappearing glaciers, acidifying oceans, depleted biodiversity, and stronger “franken storms” will be spent by those who had little to do with the economic transactions that caused greenhouse gasses to be released in the first place.

Future generations bearing the burdens of today’s inefficient economic decisions will wonder why their rights to pursue happiness were so trampled upon when the tool to account for damages to health and the planet was so readily available.  Environmentalists today need to pick up this tool and wield it aggressively.

Corporation Commissioners Take Oath of Office - New Chairman Mischaracterizes Renewables Program

By Will Greene

You will be hard pressed to find five individuals more important to the future of Arizona than the five members of the Arizona Corporation Commission (ACC).  Two new Commissioners took the oath of office yesterday, Susan Bitter-Smith and Bob Burns, while Commissioner Bob Stump took his oath for a second time and was subsequently elected by his peers to chair the Commission for the next two years (chairs serve two year terms, I apologize for confusion regarding that point in a previous post).  The new Commissioners join former chair Gary Pierce and Commissioner Brenda Burns.  All are Republicans.  You can find video of the inauguration ceremony here.

The ACC regulates Arizona’s monopoly utilities, approving or denying rate changes, energy resource plans, utility power plant deals, and setting incentives for renewable energy through the Renewable Energy Standard (RES) program.  The board also regulates investment deals advised by its securities division and handles pipeline/railroad safety, and the creation of corporations.  Decisions made by the ACC at monthly open meetings set the direction for Arizona’s energy future, and therefore its environmental and (to a significant degree) economic future.

Commissioner Bitter-Smith provided perhaps the only glimmer of hope for clean energy advocates during the event, making a nod to Governor Brewer’s support for Arizona’s solar industry stating that solar is “a part of our energy portfolio that is so important.”

In his first speech as chair, Chairman Stump delivered an eloquent address to the energy lobbyists, ACC staff, elected dignitaries, and citizens that were in the audience at the ACC’s flagship office at the state capitol in Phoenix.  The new chair’s speech stressed gradualism in ratemaking, prudence in decision-making, and a commitment to a diversity of energy sources.

In the most telling portion of the speech and a clear reference to the ACC’s vital role in incentivizing renewable energy, Chairman Stump stated, “I am a betting man, so to speak, but I don’t bet recklessly.  And I don’t bet with other people’s money.  And that’s why I refuse to bet on, or cheerlead for any one form of technology.”

This jab at solar energy proponents ignores the fact that the RES program, passed by an all-Republican Commission in 2006, was not designed to support any particular technology.  Instead, the wildly popular and successful incentive program was intended to begin weaning the state off fossil-based forms of energy (which are primarily imported and pollute) and onto a whole host of renewable energy options.  An important aspect of the RES program is the leeway granted to the utilities to choose whichever renewable energy option most efficiently fulfills their RES requirements, whether it be solar pv, solar thermal, wind, geothermal, among other sources (the utilities often choose solar energy due to Arizona's unique solar resource).  Chairman Stump’s inference that the ACC must reject picking and choosing energy sources is a straw-man argument, falsely inferring that those who support the RES are heavy-handed regulators, when their intention instead was to prepare Arizona for a future less dependant on imported, expensive, and polluting forms of energy.

Putting aside veiled slaps at Arizona’s solar future, all who care about our state should wish the new Commission luck as they weigh through the complicated issues that will arise at the ACC the next two years.  I will keep you updated here on Blog for Arizona.

Best and Worst of 2012 for AZ Enviros

by Will Greene

2012 was a decisive year for the environment and clean energy in Arizona.

Best

Banner year for solar installations

2012 represented a strong year for the solar industry, especially for project developers and installers.  The industry made headlines in the 3^rd quarter when Arizona solar installations nearly outpaced California, with 192.1 megawatts installed (enough electricity to power roughly 40,000 Arizona homes).

The widespread deployment of solar in Arizona this year, despite shrinking incentives from the Republican-controlled Arizona Corporation Commission (ACC), can be attributed to popular financing options such as residential solar leasing, and continued cost efficiency gains in the production of panels and support systems.

In March Arizona’s largest electric utility, Arizona Public Service (APS), released its 2012 Integrated Resource Plan showing just how fast the cost of solar has come down. The plan contained a bombshell finding: if all factors are taken into account, including regulatory constraints, the cost of solar electricity is lower than coal and nuclear while on par with natural gas generation.

 

 

Republicans at the ACC reject any consideration of the external costs (health impacts from air pollution, climate change) that are (partially) taken into account when regulatory constraints are included, such as in the APS’ cost comparison above.  APS is smart to consider these very real costs as they compare generation sources.  Unfortunately in the report, APS indicates its intention to invest heavily in natural gas, despite the source’s cost parity with solar – proving once again that we can always count on our utilities to do the right thing, after they’ve tried every other option.

Heather Macre’s election to the Central Arizona Water Conservation District Board

Macre’s election to the board that oversees management of the CAP canal and sets policies related to the pricing of water, was a big step in the direction of creating a sustainable economy in Arizona.  Macre, a young Phoenix attorney ran on a platform of long-term water planning that takes into account the extended drought conditions predicted for our region as a result of warming temperatures. The Arizona Republic wisely endorsed Macre, stating, “among the candidates, she's the only one who raises climate change and its effect on water supplies as an issue the board should consider. She says she would push for a more diverse energy portfolio, preparing for the day the Navajo Generating Station goes offline.” 

The next step for behemoth coal-fired Navajo Generating Station (NGS) is shaping to be a contentious area of focus in 2013 and the coming years.  Macre has the opportunity to be a leading voice calling for a more sustainable, less coal-dependent future for NGS and the CAP canal.

Advocate Stacey Champion’s efforts to defeat a sneaky anti-sustainability bill at the state capitol

You can read a great synopsis from Grist of what Champion accomplished.  She makes the “best” list because her work showed the positive impact one engaged citizen can make.

Last spring, Republican Sen. Judy Burges took advantage of a procedural move called “strike everything”, allowing her to take a completely unrelated bill (entitled “unemployment insurance; technical correction”) and write conspiracy theory-based legislation that could have caused harm to sustainability efforts.  The legislation was intended to prevent state, county, or city governments from “adopting or implementing the creed, doctrine, principles or any tenet of the United Nations Rio Declaration on Environment and Development.”  Burges saw the non-binding Rio Declaration, whose principles included protecting the Earth and fighting poverty, as ruthless attempts at creating a one-world order.

Champion learned of the bill, and became a pest for those trying to pass it.  She alerted the mayor of Phoenix, reporters at the Arizona Republic, and brought undesired attention to the bill, which eventually made national headlines.  Thanks to her work, and that by Sierra Club’s Sandy Bahr and others, the legislation failed to move forward.

Worst

Arizona Corporation Commission (ACC) election

The ACC has nearly all of the authority to set energy policy in Arizona, serving as the regulatory agency overseeing Arizona’s investor owned utilities and co-ops.  It’s decisions therefore hold enormous ramifications for our environment and economy.

For decades, and up until this Monday when our new commissioners are sworn in, the ACC has had members who recognize the vital potential solar energy holds for Arizona.  The passage of the Renewable Energy Standard (RES) by an all-Republican Commission in 2006 set the minimum level of renewable energy, 15% of total generation by 2025, that our utilities must produce.  The commissioners understood that it was going to take strong policy to shake the utilities out of their fossil-based comfort zone.  They also understood that although integrating renewables might mean some growing pains for the utilities, and a very slight initial increase in costs for ratepayers, the future would be brighter with a solar-based economy.  

Our new Commission – Republicans Gary Pierce (Chairman), Brenda Burns, Bob Stump, Susan Bitter-Smith, and Bob Burns – do not understand the value solar holds for our economic and environmental future.  Their election, and the defeat of the Solar Team candidates, was the worst development of 2012.  Arizonans should be concerned for the future of Arizona’s important net-metering solar incentive program, which could be the new Commission’s first victim.

Utility Intends to Keep Arizona’s Largest Source of Greenhouse Gas Pollution Open Indefinitely

by Will Greene

Salt River Project (SRP), Arizona’s second largest electric utility operates Arizona’s greatest single source of greenhouse gas and air pollution, Navajo Generating Station (NGS) in Page, Arizona. 16 deaths and 25 heart attacks (among other ailments) are attributable to NGS annually, earning it a #8 ranking on an Environment America list of the dirtiest power plants in the nation.

The station is the power source for the CAP canal that pumps Colorado River water throughout the state, including to Tucson.  It produces significant income and jobs for the Navajo and Hopi Nations.

In an editorial published in the Arizona Daily Sun, SRP Chief Resource Executive John Sullivan indicated the utility has no plans to close the 40-year-old station, despite its devastating health impacts and substantial contribution to the worsening climate crisis.

“The owners of NGS are working to resolve a number of challenges that face the plant, including extending a site lease with the Navajo Nation and potential costly emission control requirements from the Environmental Protection Agency. The owners are optimistic that a lease agreement that benefits both the plant and the Navajo Nation can be reached soon so that NGS might continue to operate beyond 2019. They are also hopeful that the EPA will issue a regional haze rule that recognizes the emissions controls already installed at NGS.”

Under current value structures (that do not account for the health or environmental impacts of the station) NGS represents a dependable and profitable venture for SRP and its other owners, a list that includes Arizona Public Service (APS) and Tucson Electric Power (TEP). 

The reality is these utilities could find an alternative to NGS in its current form, by hybridizing the plant with 300-500 megawatts of solar while providing clean tech jobs to Navajo and Hopi tribal members.  But it will take serious regulatory action to get them there.

Victory for Clean Energy in Fiscal Cliff Deal

by Will Greene

Clean energy advocates have reason to celebrate tonight, as the fiscal cliff agreement now headed to the White House for President Obama’s signature includes extension of the wind production and investment tax credit.

Renewing the tax credits has been the top priority of wind energy-backers for months.  The American Wind Energy Association (AWEA) released a statement tonight indicating the importance of this development for the emerging industry.

“America's 75,000 workers in wind energy are celebrating tonight over the continuation of policies expected to save up to 37,000 jobs and create far more over time, and to revive business at nearly 500 manufacturing facilities across the country. The extension of the wind energy Production Tax Credit (PTC), and Investment Tax Credits for community and offshore projects, will allow continued growth of the energy source that installed the most new electrical generating capacity in America last year, with factories or wind farms in all 50 states.”

AWEA estimated that half of the 75,000 American jobs in wind energy would have been “at stake” had the production tax credit been allowed to expire.  The lobby group had been pushing for a four year extension of the credits, which are estimated to cost taxpayers about $1 billion annually.  A House bill granting a four year extension had garnered 119 bi-partisan cosponsers (no AZ Reps signed up to cosponser the legislation).

The extension passed tonight will unfortunately only cover projects that begin construction in 2013, leaving the industry vulnerable again next year.  However in a wise move by lawmakers, projects completed in 2014 can still qualify for the credits as long as construction begins this year.  Previous incentives had required wind projects, which usually take 18-24 months to develop, to be completed by years end forcing developers to cut corners and rush construction.

While the broader fiscal cliff agreement appears to be another instance of “kicking the can down the road”, with a decision on cuts to the bloated Pentagon delayed for two months, clean energy advocates can sleep easy knowing the wind industry will continue its dramatic growth – at least through 2013.

First Clean Energy Test for AZ’s New Congressional Delegation

by Will Greene

Arizona’s nine new members of the House of Representatives should have a quick opportunity to prove their clean energy worthiness as they voice support or disapproval for a crucial wind energy incentive called the ‘wind production tax credit.’

America is on the verge of an explosion in clean energy growth that will yield tremendous economic and environmental benefits.  Dramatic efficiency gains and ensuing investment in wind energy is responsible for most of the progress made up to this point.  States like Iowa, South Dakota, and Maine already receive 20% of their net electricity from wind, according to the Energy Information Administration.

Wind energy is cost competitive in windy Midwestern and Atlantic seaboard areas (as is solar in Arizona), however utilities remain uncomfortable with the intermittent nature of the electricity as windy hours often occur in low-demand periods at night.

Chicago based utility-behemoth Exelon Corporation commissioned a study blasting the production tax credit, stating its renewal and the subsequent success of wind energy would “undermine the reliability of the grid."  Exelon is the same utility that intervened in Arizona’s recent Corporation Commission election, spending $10,000 to defeat the ‘Solar Team’ candidates.

It is no surprise to see a utility giant like Exelon push back as clean energy policy places them out of their comfort zone.  The utilities that will thrive in the 21^st century will be those that embrace clean energy and find innovative ways to deliver clean electrons to customers while keeping the grid stable.  Exelon, and nearly every utility in the country including ours in Arizona, have not yet reached such an enlightened state of mind.

With utilities dragging their feet, incentives like the production tax credit are essential in the short term.

Failure to renew the incentive would mean wind, an emerging industry, would be placed at an unfair disadvantage pitted against traditional fossil generation that continues to enjoy government support that has been served on a silver platter for more than a century.  It would also mean the loss of 37,000 jobs, slamming communities across the country.  This economic impact has led many conservative leaders and organizations, such as the ultra-conservative Steve King of Iowa and the fossil-funded US Chamber of Commerce to argue for the inclusion of a multi-year wind production tax credit extension in any tax overhaul policy.

This blogger will be following Arizona’s new congressional delegation closely as they voice support, stay silent, or oppose this crucial policy.

A Must-Watch Climate Video

by Will Greene

Superb blogger David Roberts of Grist recently gave a TEDx Talk that expertly lays out the climate threat we all face, using only the latest peer-reviewed science (read a new report led by ASU scientist Nancy Grimm showing climate change is changing ecosystems and affecting species at a more rapid rate than previously expected).  If this video doesn’t motivate you to care about the issue, I’m not sure what will.  I recommend watching all the way through, it is worth the 15 minutes.

 

Roberts details the short and long-term ramifications of our current emissions path.  While most of the climate focus remains on how carbon emissions will affect our lives in the 21^st century, more insidious is how our actions today will impact humans inhabiting the planet one hundred or two hundred years from now.  As distant and detached as that amount of time may make us feel, there will indeed be people going about their lives in 2300.  And they will certainly not appreciate “Venus-like conditions” leaving any shot at a global economy resembling anything close to ours in the 21^st century, impossible.

Consider the example we are setting for future generations.  Despite the alarm bell being rung, and rung loudly, by the scientific community (and most recently the economic development-focused World Bank, and accounting giant PricewaterhouseCoopers) we are knowingly choosing to exploit fossil energy sources full steam ahead, with perhaps the apex of our stupidity coming in the presidential debates where the contenders fell over themselves declaring their love for fossil fuels, and the greatest threat to humanity was not mentioned.

What Can Environmentalists Expect from Rep. Ron Barber?

Ron Barber toured Benson’s Apache Generating Station Friday, according to a release from his office.  This visit, and a recent letter from his office to EPA Administrator Lisa Jackson concerning the coal-fired power plant, brings Barber’s energy vision to the forefront for examination.

Barber is expected to be a friend of the solar industry after touting his belief during the campaign that Arizona can become a global leader in the technology.  He continues to host the popular “Solar Power 101” workshops that he and former Rep. Giffords initiated in 2007.  He also joined the forward-thinking House ‘Sustainable Energy and Environment Coalition’ (SEEC) upon being sworn in this summer.

These are positive signs from a congressman who recognizes the economic potential solar energy offers for his district and state.  However his recent letter to Administrator Jackson should raise eyebrows for those hoping southern Arizona has a Congressman (other than Rep. Grijalva) it can trust to defend the environment, clean up the air, and take the threat of climate change seriously.

An excerpt from Barber’s letter:

“Under the (EPA’s) FIP, the Apache Station could be forced to both increase rates and eliminate jobs to meet the required emissions limits.  These negative impacts are not in the best interests of my constituents.  I am requesting that EPA reconsider this plan and the short timeline imposed on this facility to install new technology and emission controls.  I believe that every effort should be made to allow the facility to act to improve visibility over a period of time that will ensure that it can remain viable well into the future. Additionally, I am requesting a meeting to discuss these concerns and how we can best work together to protect the Apache Generating Station and its customers.”

Barber’s concern for his constituents should extend to those who suffer from the effects of the pollution-spewing facility, as well as the economy of the mid and latter 21^st century that will be ravished by climate change.

According to a 2010 Abt Associates study commissioned by the Clean Air Task Force, fine particle pollution from Apache Generating Station annually causes 6 heart attacks, 77 asthma attacks (4 resulting in ER visits), and 4 deaths.  Abt assigned a monetary value to these events showing the annual health impact of the station equals approximately $32 million.  ER visits are an expensive burden on individuals and society, and it is hard to put a value on human life.  Barber would be smart to weigh these factors before he “ensures that it (Apache) can remain viable well into the future”.

The jury is out on the environmental credentials of southern Arizona’s new congressman.  Keep an eye out for his impending vote for or against extending the wind energy Production Tax Credit, an initiative that is laying the foundation for a clean energy economy in America’s windy Midwest.

Republican’s Support for Real Estate ‘Sprawl Subsidy’ May Have Decided Corporation Commission Race

By Will B. Greene 

  Full Disclosure: The author was Paul Newman’s 2012 Campaign Manager for Arizona Corporation Commissioner.

Special interests won the day in the race for the Arizona Corporation Commission (ACC) in 2012, while the Arizona public got legally swindled. 

 On Tuesday it was revealed the Arizona and National Association of Realtors spent $186,000 supporting Republican ACC candidates, Bob Stump, Susan Bitter-Smith and Bob Burns, who beat Democrats Paul Newman, Sandra Kennedy, and Marcia Busching on November 6th.  The realtors, and Chicago based utility-giant Exelon (who contributed $10,000 for good measure) made their purchase under the political committee moniker “Taxpayers’ Voice Fund”, with the money funding two mailers targeting swing voters just days before election day.