Lea Márquez Peterson Elected Chairwoman of the Arizona Corporation Commission

On January 4, 2021, Commissioner Lea Márquez Peterson was elected to serve as the Chair for the Arizona Corporation Commission. Peterson was first appointed to the Commission by Governor Doug Ducey in 2019 and was subsequently elected in November 2020. Chairwoman Peterson is the first Latina elected to a statewide office in Arizona and the Commission’s first Chair from Southern Arizona.

Chairwoman Peterson has been a strong advocate of efforts to update Arizona’s Energy Rules, and she took an active role in ensuring that the rules package adopted by the prior Commission represents a meaningful effort to achieve a diverse and cost-effective mix of energy sources while achieving a robust goal of 100% carbon-free energy by 2050.  Chairwoman Peterson has committed to reinforcing the pending Energy Rules update now that she is at the helm.

Among the priorities for her first 100 days and beyond, Chairwoman Peterson plans to examine policies and procedures to increase the transparency and consistency of the Commission as a whole and review the direction and workload of Commission staff.

On her upcoming term, Chairwoman Peterson remarked:

Our great state is at a crossroads.  As we begin to recover from the depths of this pandemic, Arizonans want, and deserve, an Arizona Corporation Commission that is united, forward-looking, and prepared to confidently overcome challenges which will arise.  Let’s work as one team whenever possible to create the most effective and impactful Arizona Corporation Commission possible.

The Western Way congratulates Chairwoman Peterson on her election to the Commission and Chairmanship, and we look forward to working with her and the other Commissioners in the coming months.

Arizona’s post-pandemic economic recovery must include energy innovation

This piece by TWW’s Doran Miller and the Arizona Technology Council’s Steve Zylstra was first published in the Phoenix Business Journal on December 17, 2020, and can be accessed here.

At the onset of 2020, Arizona’s economic outlook was stable and the state’s leading industries were predicted to grow. But just a few months into 2020, we found ourselves in a global pandemic and the state’s economy was hit hard.

This is not the first time we’ve suffered an economic downturn. Yet we’ve always found a way to rebound by thinking creatively and strategically about our recovery and supporting the industries that are the core drivers of economic growth in Arizona. This time is no different.

While there are indications Arizona’s economy is already starting to bounce back, there’s no question that huge sectors of our economy have suffered financial losses. We still have a long way to go before we make up that lost ground. As with past economic downturns, recovering from the economic consequences of Covid-19 will require us to couple the leadership and innovation of the private sector with smart public policy tools, including effective public-private partnerships.

At the same time, we continue to be mindful of the critical need to produce the energy our economy requires to grow while curbing the impact of energy production on the environment. Covid-19 and climate change present unique challenges we must address to ensure Arizona’s economic outlook remains strong.

With that in mind, the Arizona Technology Council, in partnership with The Western Way, recently released a report, titled "Innovation and Clean Energy Industry Recommendations for Economic Recovery: Policy Options from Arizona’s Business Community." It is intended to give policymakers a road map for incorporating the clean energy and innovation sectors into Arizona’s economic recovery plan.

In crafting the report, we brought together a group of business leaders from across the state to generate ideas and recommendations for how to incorporate the clean energy and innovation sectors into our state’s economic recovery. The goal of this report is to give state and federal policymakers a vetted menu of policy options we know will make a strategic and meaningful impact on Arizona’s economic recovery and environment, especially as new funding streams and legislative opportunities become available in 2021.

Arizona’s private sector — especially the clean energy and innovation sectors — is already a major driver of our economy. As such, the recommendations contained in the report focus on opportunities to support these industries as they create jobs and develop innovative technologies to grow Arizona’s economy and address climate challenges.

For example, the report includes tools to encourage demand-side adoption of energy efficiency measures, opportunities for statewide energy infrastructure investment, and public-private partnerships and policies that support building Arizona’s talent pipeline in the clean energy and advanced manufacturing sectors.

Even as newly approved Covid-19 vaccines are starting to be distributed and new treatments are being used, we likely have many months before we’re able to return to normal. Yet we believe we must start planning now for a robust recovery that not only replaces jobs that were lost but also prioritizes technology and innovation, so Arizona’s economy emerges even better than before.

Steve Zylstra is president and CEO of the Arizona Technology Council and the SciTech Institute, and Doran Miller is state director of The Western Way.

Choice, competition and jobs: A clean energy plan that works for Arizona

This piece by Andy Tobin first ran in the Arizona Capitol Times on December 16, 2020 and can be accessed here.

Choice, competition and jobs: A clean energy plan that works for Arizona

Over the past decade, the U.S. has undergone a revolution in the way we produce and consume energy. Breakthroughs in the production of traditional energy sources have ended our reliance on hostile foreign powers for oil and natural gas. At the same time, advanced technologies that produce and store clean energy, and use energy more efficiently, are dramatically cheaper than they used to be.

This means, for all intents and purposes, we are energy independent as a nation. But energy independence at the national level has another positive impact: It allows individual states to take control of their own energy needs and boost their own economies in the process.

For the latest example of this trend, look no further than the Arizona Corporation Commission (ACC), which oversees the state’s energy grid. In mid-November, the ACC announced a major update of its Energy Rules, which will put Arizona on a path to produce 100% emissions-free electricity by 2050. Not only that, the revised rules will maximize competition between potential electricity suppliers and provide new levels of transparency into the decisions of utility companies like Arizona Public Service (APS).

These changes will put Arizona in charge of our energy future like never before, building on our state’s proud history of innovation in solar, hydroelectric power, nuclear, energy storage and other clean energy technologies. In fact, earlier this year, APS announced its own goal “to deliver 100 percent clean, carbon-free electricity to customers by 2050.” That goal made sense, APS said, because the utility company was already “on a trajectory of increasingly clean energy through solar power innovation, major investments in energy storage technology, carbon-free nuclear operations and advances in energy efficiency solutions.”

The ACC’s updated Energy Rules will provide the long-term regulatory certainty needed to support major, decades-long investments in the Arizona energy sector. At the same time, however, the ACC built much needed flexibility into the rules that play to Arizona’s energy strengths.

Unlike some other states, the ACC will not mandate the use of renewable technologies to meet the 2050 goal of 100% emissions-free electricity. Instead, the ACC is adopting a technology neutral approach, which will encourage competition between clean energy sources, including Arizona’s Palo Verde nuclear station – the nation’s largest source of carbon-free electricity – and our state’s rapidly growing solar energy sector. 

This is the right way to go. While some environmental activists only support wind and solar, and are openly hostile to nuclear power and hydroelectric dams, it does not make sense to narrow the field of clean energy technologies or exclude carbon-free sources that already have a proven track record in our state. The goal of 100% carbon-free electricity by 2050 is ambitious enough and we don’t need to make the work any harder through bureaucratic overreach.

By investing in energy sources that make sense for Arizona, we can reduce and eventually eliminate our reliance on imported energy.  Arizona based solutions are critical for our state’s economy but also for protecting our natural resources.  The use of Bio-Mass (better forest maintenance) as an energy resource also will help in protecting our forests from wild-fires and water conservation.  Keeping more of what we spend on energy inside our own state will also boost Arizona’s economy and create jobs where they are badly needed.

For example: Since 2001, solar energy facilities in rural Arizona have added $9.4 billion to the state economy and created almost 18,000 jobs, according to a study by the conservative environmental non-profit The Western Way. It’s exciting to think how many more jobs could be created by solar and other clean energy technologies under the ACC’s long-term goal. Our state will need all the jobs we can get in the years ahead.

On a personal note, I was proud to serve as a member of the ACC from 2015 until 2019, when I joined Gov. Doug Ducey’s Cabinet as Director of the Arizona Department of Administration. While at the ACC, I pushed my fellow commissioners and ACC staff to come up with a long-term plan to harness Arizona’s clean energy potential.

I also introduced my own proposal, dubbed the Energy Modernization Plan, to get that discussion moving. That discussion has produced an energy plan for Arizona that is both ambitious and pragmatic.  I am very heartened that leaders like Lea Marquez Peterson (Commissioner appointed by Governor Ducey and now recently elected in her own right), are building on this plan and making it come to fruition: The ACC should be proud.

Compared to where our nation stood just 10 years ago, America’s energy revolution is moving further and faster than most people ever dreamed.  Arizona played a leading role in this revolution, and thanks to the ACC’s new clean energy rules, we will continue to lead in the years and decades to come.

Andy Tobin served on the Arizona Corporation Commission from 2015 to 2019. A former Speaker of the Arizona House of Representatives, private businessman, and head of various state agencies, he currently serves as Director of the Arizona Department of Administration.

TWW and AZ Technology Council Release Recommendations on Economic Recovery

Arizona is emerging as a national leader in technology and innovation, including developing and adopting clean and renewable energy solutions for our advanced economy. The Western Way and Arizona Technology Council recently partnered to convene a stakeholder process bringing together business leaders from across Arizona to generate ideas and recommendations for best incorporating the clean energy and innovation sectors into our state’s economic recovery plan. The results of this process can be found in a new report: Innovation and Clean Energy Industry Recommendations for Economic Recover: Policy Options from Arizona’s Business Community.

As we look ahead to the state’s post-COVID economic recovery, we believe the clean energy sector has the potential to play a significant role.

The result of our stakeholder driven process provides policy recommendations and tools to help leverage the strengths of Arizona’s innovation sector to benefit the economic and environmental condition of the entire state.

Specifically, we recommend:

• ENCOURAGING support of demand-side adoption of energy efficiency measures and clean and renewable energy technologies, preempting height and setback restrictions and exempting renewable energy storage equipment from transaction privilege taxes;

• INVESTING in infrastructure and identifying opportunities for public-private partnerships;

• PLANNING for long-term integration of renewable hydrogen into Arizona’s energy portfolio and economy;

• SUPPORTING policies that encourage advanced manufacturing, including funding programs that enhance the talent pipeline from Arizona’s community college and state university systems into the clean energy and advanced manufacturing sectors; and

• PRIORITIZING clean and renewable energy opportunities by creating a state Clean Energy Innovation Office or Designated Clean Energy Innovation Specialist at the Arizona Commerce Authority.

AZ Corp Comm Passes New Energy Rules

On Friday, November 13th, the Arizona Corporation Commission voted 4-1, with only Commissioner Justin Olson opposed, to approve a long-awaited update to Arizona’s Energy Rules.

Under Arizona’s existing rules, utilities are required to get 15% of their power from renewables by 2025, a requirement passed in 2006, and to use efficiency measures to meet 22% of their energy demand by this year pursuant to an energy efficiency requirement adopted in 2010.

The new rules, which are the product of an extensive and bipartisan stakeholder process, represent an important step for Arizona toward becoming a national leader in clean energy. The package approved on Friday will require Arizona’s utilities to provide 100% carbon-free energy by 2050, with interim benchmarks between now and then. To reach that robust goal, the new rules take a carbon-reduction approach, which allows utilities to meet the carbon-free requirement by using renewable energy as well as nuclear power and energy-efficiency measures that help customers reduce consumption, rather than a technology-based requirement, which would have required utilities to use a set amount of renewable energy, such as solar and wind, to reach the goal.

The new rules also include an updated energy efficiency standard that requires utilities to implement enough energy-efficiency measures by 2030 to equal 35% of their 2020 peak demand, with interim requirements to ensure utilities are working toward that goal annually. In addition, the new rules include battery storage policies as well as important updates to the Integrated Resource Plan and purchased power agreement processes that will introduce more transparency and competition.

In explaining his yes vote on the rules package, Chairman Burns called the new IRP process “one of the most modern . . . in the country.”

The package passed by the Commission on Friday must still go through a formal rulemaking process before becoming final. That process will include a formal notice of proposed rulemaking, public comment period, and an economic impact analysis. Ultimately, the final package must be approved by the new Commission, which will include existing Commissioners Sandra Kennedy, Lea Marquez Peterson, and Justin Olson as well as new Commissioners Anna Tovar and Jim O’Connor.

Regulators should be commended for moving on energy policy issues

This piece from TWW’s Arizona Director Doran Miller originally ran on October 30, 2020 in a special section on energy issues in the Arizona Capitol Times.

Regulators should be commended for moving on energy policy issues

Commentary by Doran Arik Miller

Polling clearly shows that Arizonans, like other Western voters, want their elected officials to engage on energy and environmental issues in constructive and meaningful ways. Western states policymakers, in turn, are increasingly leading on environmental issues by driving policies that support clean energy innovation and market-based solutions to environmental challenges. The recent vote by the Arizona Corporation Commission to adopt higher energy efficiency standards is exactly the kind of pragmatic and market-oriented approach that Arizonans want to see.

Recent polling conducted by the Conservative Energy Network found that Arizonans across the political spectrum favor market-oriented policies to address pressing energy needs and environmental concerns. Overall, 87% of likely Arizona voters believe that government should play a role to accelerate the development and use of clean energy, and 65% preferred a market approach to expanding clean energy production.

Arizonans also favor policies that encourage energy efficiency. An early August poll conducted by The Western Way found that 85% of conservative Arizona voters would tell a candidate for office to support policies that encourage energy efficiency. Given Arizonans’ preference for a market-oriented approach, their general support for energy efficiency policies makes sense. With benefits to residential, commercial, and industrial users in the form of lower utility bills, energy efficiency measures are widely popular.

Energy efficiency, at its most basic level, is just using less energy to get the same job completed, and it is generally regarded as the cheapest way to avoid higher rates for energy by using existing generation more efficiently with less waste. Arizona’s utilities already offer a range of programs to meet Arizona’s existing energy efficiency standard by incentivizing demand-side adoption of energy efficiency measures, including residential rebates for smart thermostats, energy efficient pool equipment, lighting and home improvements, and commercial programs dealing with demand response and incentives on efficient upgrades.

The new energy efficiency standard, which has been part of the ACC’s ongoing efforts to modernize Arizona’s Energy Rules and would replace the standard set in 2010, would require utilities to implement energy efficiency measures by 2030 that are equivalent to 35% of their 2020 peak demand. This new standard has the potential to open the door for even greater use of existing energy efficiency measures as well as new innovations in home storage, automation, and smart grid technology. The new standard will also provide the kind of long-term market certainty that is necessary to drive increased innovation.

The ACC should be commended for finally moving on important energy policy issues facing the state of Arizona with bipartisan agreement. There is significant common ground on energy and environmental issues that too often goes unnoticed, and making progress on updating and modernizing our state’s energy rules shows that pragmatic solutions, which voters hold as a priority, are possible.

Polling Finds Bipartisan Consensus for Clean Energy Action in Arizona

TWW’s AZ Director Jaime Molera hosted a panel discussion on the results of a new survey commissioned by the Conservative Energy Network and The Conservation Coalition show voters in Arizona are in favor of action that focuses on market-oriented policies to address pressing energy needs and environmental concerns. 

Overall, 65 percent of likely voters in Arizona preferred a market approach to expanding clean energy production, more than 3 to 1 over implementing government mandates, subsidies or levying a carbon tax.  However, a very strong majority of 87 percent believed that government should play a role to accelerate the development and use of clean energy. 

The survey, conducted online by Glen Bolger of Public Opinion Strategies, polled 1,000 respondents across the nation, with over samples in four key swing states: Arizona, Georgia, Michigan, and Wisconsin. Respondents, all likely voters, were asked questions about clean energy, climate, and the importance of these issues to their vote ahead of the November election.

Respondents across the political spectrum indicated a willingness to support elected officials offering pragmatic solutions to energy and environment issues:

• 83% of Conservative Women and 79% of AZ Women with a post-secondary degree said they would be more likely to support a conservative candidate who supports an innovation-based approach to handling climate issues.

• 81% of AZ voters aged 18-34 place climate as an issue of high importance when voting.

• 74% of Conservatives and 59% of Independents say nuclear should remain part of our nation’s clean energy mix.

• 64% of AZ Independents say they would view President Trump more favorably if he took a conservative approach to clean energy and climate issues.

“The results of this polling clearly show that voters in Arizona want elected officials to engage on energy and environment issues in constructive and meaningful ways.  Voters want an alternative to a topdown, big government approach to solving these issues and market friendly policies can fill the vacuum,” said Jaime Molera, Arizona Director of The Western Way.   

View the full results of the polling here. 

View the polling presentation briefing here.

AZ Corp Comm Approves New Energy Efficiency Measures

The Arizona Corporation Commission voted 4-1 on October 14, 2020, to increase Arizona’s energy efficiency standard.  The standard was first set in 2010 and has been part of the ACC’s ongoing efforts to modernize Arizona’s Energy Rules.   The new standards would require utilities to implement energy efficiency measures by 2030 which are equivalent to 35% of their 2020 peak demand, up from 22%. 

ACC Commissioner Lea Marquez Peterson, who supported the plan said:

“Innovations in our homes and on the grid, such as smart devices and ENERGY STAR-rated appliances, provide some of the most direct ways for Arizona’s families to save money and are constantly evolving. These energy-saving technologies give Arizona’s households new opportunities to save, including during the times of day when the cost per kilowatt-hour is highest for customers.” 

Energy efficiency, which at its most basic level, is just using less energy to get the same job completed – is generally regarded as the cheapest way to avoid higher rates for energy by using existing generation more efficiently with less waste.  Programs offered by utilities to meet the energy efficiency standard range from residential rebates for smart thermostats, energy efficient pool, lighting and home improvements to commercial programs dealing with demand response and incentives on efficient upgrades. 

With benefits to residential, commercial and industrial users in the form of lower utility bills, energy efficiency measures are widely popular. TWW recently surveyed conservative voters in Arizona about energy efficiency polices and found deep support.   The poll found that 85% of conservative voters in Arizona would tell a candidate for elected office to support policies that encourage energy efficiency.

The ACC will likely meet on October 29th to continue their discussion on modernizing other aspects of Arizona’s Energy Rules.

TWW Submits Comments to Nevada Climate Initiative

On October 14th TWW submitted comments to the Nevada Climate Initiative, recommending pragmatic policy steps that the state of Nevada could implement to help boost rural economies and make a positive environmental impact.

Thanks to technological innovations there has been a revolution in the energy sector over the last decade leading to a rapid and unforeseen drop in prices for renewable and clean energy which will have a profound effect on the climate and provide a significant boost Nevada’s economy. Nevada is poised to take full advantage of this energy revolution due to its strong solar, geothermal, hydroelectric, wind and lithium resources.

These developments are key to ensuring that Nevada can realize economic benefits while taking steps to address climate issues. Last year, TWW partnered with the Carson Valley Chamber of Commerce to study the economic impacts of rural renewables across the state of Nevada and the potential impacts of increased development. The study (See attached), found that renewable energy projects in rural Nevada benefit the state and rural communities with a significant amount economic impact. From 2006 to 2017, 29 rural renewable projects led to a total output of $7.9 billion that flowed into the Nevada economy, created 12,056 Nevada jobs, paid $947.3 million in wages paid to Nevada employees, and resulted in over $152 million in tax payments to state and local governments. These projects help drive investment and jobs to regions of the state that often go overlooked.

With the economic slow-down due to COVID-19 hitting Nevada especially hard in terms of job losses and major sectors of the economy being shut down for months, Nevada should look to policies within the climate initiative which can deliver job growth and investment across the state. Large scale infrastructure projects like the 690MW Gemini Solar, the largest solar project in the country located northeast of Las Vegas, will drive over $1 billion in investment and create an estimated 700 jobs over the next two years. Paving the way for more infrastructure projects like Gemini Solar and the announced investments from NV Energy, especially in rural regions of the state, would ensure that Nevada remains a leader in clean energy and climate action while maintaining a strong economy.

TWW recommends the following policy concepts for consideration by the Nevada Climate Initiative:

1.     Advance policies that expand electrification and connect rural communities. Examples include:

• Expand rural infrastructure for electric vehicles and other alternative fuel vehicles.

• Connect incentives for rural economic development projects to expansion of infrastructure including transmission infrastructure. 

• Promote electrification of irrigation ditches/ water delivery where economically feasible. 

• Ensure that rural energy transmission and storage projects are connected.

2.     Remove barriers to renewable energy development through zoning, designations, and tax policy. Examples include:

• Remove zoning barriers to energy production and storage while upholding private property rights for landowners that choose to develop energy projects.

• Streamline siting and easements for renewable development and transmission such as exemptions and permitting.

• Work with local counties to collaborate with federal land managers to put renewable projects on public lands by streamlining federal permit processes. The bi-partisan Public Land Renewable Energy Development Act (PLREDA) in Congress creates a strong framework for better coordination with Federal agencies. 

3.     Drive rural renewable energy development through zoning, designations, and tax policy. Examples include:

• Provide incentives for rural landowners to create distributed energy to power their own operations. 

• Replicate at the state and local levels the BLM’s model of “solar energy zones” (SEZ). These are areas designated to be well suited for utility-scale production of solar energy and where the BLM prioritizes solar energy and associated transmission infrastructure development.

• Create ‘Enterprise Zone’ tax credits, which are designed to promote a business-friendly environment in economically distressed areas through state income tax credits, to apply to renewable energy investments.

4.     Position the rural Nevada as an easy choice for renewable energy investments. Examples include:

• Support regional share benefits/multi-county revenue sharing state policy, such as Intergovernmental MOUs, to streamline the approval process for renewable energy projects. This would allow interested counties and local governments to opt into, thus signaling they are willing to attract projects.

• Seek expansion of manufacturing wind farm and solar components near sites to increase local economic impact and jobs. 

• Re-designate existing state economic development staff whose exclusive job it is to help rural counties develop and publicize their pricing menu for permits and applications, as well as an access portfolio (e.g. transmission, right-of-way, etc.) for renewable energy development.

• Explore policies to create competitive wholesale electric markets as a non-mandate approach towards helping utilize renewables at a higher capacity across the region.

Clean energy development can help Colorado's economy back onto its feet

This opinion piece by TWW’s John Karakoulakis was originally published in The Colorado Sun on September 16, 2020:

COVID-19 has knocked Colorado’s thriving economy off track. The path to getting our economy back on a strong footing won’t be easy, but clean energy development has been a boon for our state, and the industry will be vital in spurring economic growth.   

In the near-term, Congress will undoubtedly return focus to economic stimulus legislation. Any viable stimulus plan must include energy investment.

Thankfully, two bills aimed at this goal already exist. America’s Transportation Infrastructure Act (ATIA) and the American Energy Innovation Act (AEIA) are two commonsense solutions to aid our damaged economy.

Both of these bills have gained bipartisan support on Capitol Hill. Among other aspects of recovery aid, is should come as no surprise that congressional Republicans have signaled their support for fiscally prudent stimulus aid focused on clean energy development.  

A recent poll from Citizens for Responsible Energy Solutions finds that two-thirds of Republicans agree that clean energy investment is important to reopening the economy. Furthermore, three-fourths of Republicans believe it’s important for the GOP to focus on clean energy production in the U.S. 

As director of The Western Way, I believe our conservative leadership has the ability to solve the environmental challenges facing our country and grow our economy.

By driving efficient, market-based solutions that support growth, Republican leaders can improve our economic outlook while protecting our precious natural resources.

Sen. Cory Gardner, who has exemplified a conservative-minded clean energy approach in the past, is again, a leading voice in the U.S. Senate urging for sensible investments the clean energy sector. 

Last month, Sen. Gardner called on Senate Majority Leader Mitch McConnell to consider policies that boost jobs and innovation across the clean energy economy, including renewables, nuclear, carbon capture, efficiency, advanced transportation and energy storage. 

With Sen. Gardner’s help and the support of his colleagues in Congress, I believe we can get Colorado’s economy back to a safe place. 

Colorado already relies on instate clean energy production for jobs and power. From 2010 to 2019, Colorado’s electricity from renewable sources has more than doubled, led by increased wind and solar power.

Colorado had 62,420 clean energy jobs in 2019. These jobs were spread out across sectors, with 36,092 jobs in energy efficiency and 17,924 jobs in renewable energy.

The pandemic has erased many of these jobs, but they could return just as easily. Indeed, Colorado is poised to flourish as a non-traditional energy producer just as it has historically led the country as a traditional energy producer.

In 2019, wind power accounted for 79% of Colorado’s renewable electricity generation, followed by hydroelectric facilities at 12%, utility scale solar at 9%, and biomass at less than 2%.

Preserving and expanding clean energy jobs not only stimulates the economy, but also improves public health and protects the environment by reducing greenhouse gas emissions.

Both the America’s Transportation Infrastructure Act (ATIA) and the American Energy Innovation Act (AEIA) are worthy pieces of federal legislation to this end. 

ATIA streamlines project delivery and federal approval of infrastructure projects, reducing carbon emissions, supports carbon capture, utilization and sequestration projects and provides funding to build and protect sustainable infrastructure.

The AEIA secures the United States place as a global energy leader by modernizing domestic energy laws and in turn strengthening our national security and increasing our competitiveness on a global stage. 

Clean energy is an opportunity to invest in U.S. workers, communities and industries. As a high-growth sector, clean energy will add jobs in every state and at every skill level, giving Americans across the country new opportunities for rewarding and well-paying jobs.

As our nation regains its economic footing, Republicans should lead the charge for commonsense energy solutions.

John Karakoulakis is Director of The Western Way, a non-profit organization focused on conservative solutions to western U.S. conservation issues.

Advanced energy jobs will power Utah’s recovery

This opinion piece first ran in the Salt Lake Tribune on September 8, 2020:

Throughout Utah’s history, its citizens have constantly reinvented themselves. Most recently, Utah has been a leader in cultivating a future in the clean energy sector.

But, like the rest of the economy, Utah’s clean energy sector has been set back significantly by the pandemic. Work on new and existing projects has been suspended and restarting them has been difficult in many cases due to strained supply lines and uncertainty. At the same time, demand and prices have fallen. We need to recapture the momentum, and the proven economic benefits of clean energy warrant bold action.

The good news is, Utah is already bouncing back. As Utah’s leaders consider public policy measures to fortify the damaged economy, people are jumping at the opportunity to resume their livelihoods, including in clean energy industries where growth had been so powerful.

Prior to the shutdowns, Utah’s clean energy industry had been a success by any measure, especially the solar sector. In 2019, Utah ranked second in the nation for solar jobs per capita. Through 2018, half of our state’s clean energy came from Utah solar facilities, which have increased their capacity 26 times over Utah’s 2015 solar capacity.

Meanwhile, Utah’s energy efficiency sector has garnered $51 million in investments, which have led to more than 31,000 jobs, resulting in nearly 255,000 megawatt-hours in net incremental savings. And Utah wind power has pulled $900 million in cumulative investments. Over the last 10 years, the cost of wind power in Utah has decreased 40 percent, which clearly shows there’s plenty of room for further development and jobs in this arena.This great track record has led to support from clean energy throughout Utah — and for good reason.

Recent polling conducted in August of 2020, by The Western Way, found that 66 percent of conservative Utah voters want an energy strategy that increases use of electrical generation from renewables, utilizes battery storage and increases energy efficiency. Furthermore, 72 percent of state conservatives believe investment in rural renewable energy infrastructure is important to COVID-19 economic recovery.

Among Utah’s conservative leaders who are taking notice is Congressman John Curtis, who represents Utah’s 3rd District in Washington and is a member of House Natural Resources Committee, the Western Caucus, and the Roosevelt Conservation Caucus. His district has seen a drastic increase in clean energy jobs, and it now has the most solar and energy efficiency jobs of anywhere in the state; in fact, the 3rd District enjoyed over 5,600 solar jobs in 2019, a 26 percent increase from the year before, and it employed more than 12,000 workers in the energy efficiency industry. But the pandemic has thrown this future into uncertain waters. Between March and April, Utah lost 3,901 clean energy jobs and 2,933 energy efficiency jobs, representing one of the most severe economic hits our state has seen in any sector this year.

Two broader proposals have already been introduced in Congress could be an even better way forward — America’s Transportation Infrastructure Act (ATIA) and the American Energy Innovation Act (AEIA). ATIA would invest in America’s roads and bridges while accelerating infrastructure projects and funding efforts to reduce carbon emissions. Meanwhile, AEIA would modernize our nation’s energy laws for the first time in more than 12 years.

Investing in clean energy makes sense; it is good for the economy, or national security, and our environment. Utah’s reopening is already underway, but we need to ensure workers have jobs to go back to.

John Karakoulakis is director of The Western Way, a non-profit organization focused on conservative solutions to western U.S. conservation issues.

Western Conservative Voters Place a Strong Importance on Public Lands and Energy Issues

The Western Way released new polling results showing conservative voter attitudes towards energy, public lands, and COVID-19 economic recovery policies. The survey shows that western conservative voters place a high value on these issues when deciding whether or not to vote for a public official. 80 percent of respondents said that energy issues including domestic energy production, energy independence, and cleaner sources of production were important in their support of a candidate. 70 percent of respondents said that issues involving outdoors, public lands, waters and wildlife are important to them when choosing a candidate.

“It’s no surprise that western conservative voters favor pragmatic solutions to energy and public lands issues, and they take notice when elected officials work to offer these types of solutions,” said Greg Brophy, TWW’s Colorado State Director. “These survey results make clear that voters do not see a strong economy and a healthy environment as a binary choice, conservatives want both and expect their elected leaders to deliver.”

The online survey, conducted on behalf of The Western Way, questioned 750 conservative voters in Arizona, Colorado, Idaho, Montana New Mexico, Nevada, Utah and Wyoming from August 7-14, 2020. Among other top results, the survey asked respondents about their support for specific policy proposals with key findings including:

• 87% of western conservative voters would tell a candidate to support policies that encourage energy efficiency.

• 79% of western conservative voters would tell a candidate to support policies that prioritize lowest cost resources when building new sources of energy generation.

• 72% of western conservative voters would tell a candidate to support policies that encourage greater use of renewable energy, including setting long-term goals.

• 68% of western conservative voters would tell a candidate to support policies that fund research and development for new innovations in energy production such as nuclear, renewable, carbon capture, and battery storage.

  Investment in infrastructure, rural economic development through energy projects and expansion of local advanced manufacturing jobs were all seen as important policies to help the economy rebound from COVID-19. Key findings include:

• 86% of respondents believed investments to upgrade and expand the country’s aging electrical infrastructure system to increase resiliency and reliability were important to the recovery.

• 85% of respondents said investment in public lands infrastructure, such as maintenance at national parks and wildlife migration corridors, to increase outdoor recreation access and drive the outdoor recreation economy were important.

• 77% of respondents believed it was important to support and grow their state’s advanced manufacturing industry by offering loans, credits, and other incentives to companies who create local manufacturing jobs.

The survey results can be found at: https://www.thewesternway.org/2020-polling

Republic Services Places Largest Single Order in Waste Industry from Zero-Emissions Leader Nikola Motors

On August 10th, Phoenix-based Nikola Corp. announced a major deal with Republic Services, also headquartered in Phoenix and the nation’s second largest recycling and waste-handler after Waste Management, for 2,500 new electric garbage and recycling trucks. Recent reporting on the deal indicates that the zero-emissions trucks will be manufactured at Nikola’s Coolidge manufacturing plant and have “a range of 150 miles and the capacity to handle 1,200 residential trash cans on a single charge.”

The deal for 2,500 electric truck chassis and bodies includes an option to increase the order to 5,000 units, with on-road testing scheduled to begin in early 2022 and deliveries expected in 2023.

Roughly one-fifth of Republic’s 16,000 vehicle fleet currently runs on natural gas, but Nikola has said that “the zero-emission trucks will outperform vehicles powered by diesel or natural gas in both horsepower and torque.” According to a Wall Street Journal exclusive, “Nikola’s long-term plan is to be a leader in passenger and heavy trucks that rely on batteries or fuel cells for power.”

Once again, Arizona businesses are leading the way in clean energy technology and innovation. As Nikola CEO Mark Russell said of the deal, “This is a game changer. Refuse truck customers have always ordered chassis from truck OEMs and bodies from other suppliers. Nikola has fully integrated the chassis and body, covering both with a single factory warranty. Trucks will include both automated side loaders and front-end loaders — all of which will be zero-emission.”

Colorado’s Rural Renewables Generate $9.4 Billion in Construction and Investment Activity

The Western Way, in partnership with Action22 and PRO 15, released, “The Economic Benefits of Colorado’s Eastern Plains Renewable Energy Industry.” The economic impact study was conducted by Development Research Partners and analyzed rural, utility scale renewable energy projects constructed in 15 eastern Colorado counties. These counties make up over 95% of the state’s renewable energy capacity.

The report analyzed 40 projects built in Colorado (7 under current development or construction slated for completion by 2024) which result in significant economic benefits to rural Colorado including:

• $9.4 billion in construction and investment activity in from 2000 to 2024. By 2024, investment will have increased by 75 percent since 2016.

• 6,334 eastern Colorado jobs employed by 366 businesses

• $388.6 million in annual economic output

• $23.1 million in annual property taxes paid to local governments

• $15.2 million in annual lease payments to ranchers and farmers

“This economic impact study is important on two fronts for eastern Colorado,” said Greg Brophy, Colorado Director of The Western Way. “First it quantifies the benefits that the region receives for its part in generating the vast majority of Colorado’s renewable energy, of which the importance cannot be understated. Lastly, this report should be a call for counties in the eastern plains without any projects to roll out the welcome mat and begin to benefit from this economic development.”

Colorado’s eastern plains are a highly desirable location for renewable facilities, by 2024, the region’s renewable capacity is expected to expand by more than 22 percent, adding 1,109 MW and bringing the total capacity to 6,069 MW. The direct and indirect benefits of this expansion was found to be $5.9 billion in total economic output produced by 12,819 employees. The report also breaks down $23.1 million in annual payments from property tax revenue generated by the projects which go to over 120 county and local taxing districts in the region.

The release of the report drew support from elected officials and eastern Colorado business leaders:

“In several of the counties in my legislative district, taxes paid by wind farms make up nearly half the amount of the annual operating revenue for county government. This is a long term and stable funding source which does not fluctuate with the market and it is enabling local governments to fund needed services without raising taxes. Take Kit Carson County as an example, the total local tax revenue brought in annually is just over $525 per county resident, that is a meaningful amount.” -Representative Rod Pelton, HD-65

“The county receives nearly $2 million dollars a year from these projects which makes a significant impact on our annual budget. Eastern Colorado has been hit hard by the COVID economic shutdown and swings in commodity prices. We are thankful to have these renewable energy projects paying a steady stream of tax revenue and lease payments which benefit our local residents.” -Kit Carson County Commissioner Cory Wall

“From landowners who receive lease payments to the graduates of the local community college who are able to find high paying jobs and stay close to home, renewable energy projects in eastern Colorado are making significant contributions across our region’s economy. The growth in the economic output, local tax revenue and jobs in just the last four years is astounding. Eastern Colorado is open for business and ready for more.” -Cathy Shull, Executive Director of PRO 15

“Logan County is not only benefiting from construction of new renewable energy projects but we are seeing re-investment in older projects which will extend the lifespan by decades, yielding even longer-term economic impacts than initially estimated. These projects benefit Logan County with an increase in tax base, but also provide a great revenue stream to local small businesses. With the nation’s premier wind technician training program at Northeastern Junior College, access to strong wind and solar resources, and local support, Logan County has gained a reputation as one of the best places to develop new energy projects in the country. -Trae Miller, Logan County Economic Development Director

Western Senators Gardner and McSally Push for Clean Energy Investment

As the country continues to grapple with the economic challenges wrought by COVID-19, Congress is now working on putting together a fourth relief and recovery package. With that in mind, this week Arizona Martha McSally and Colorado Senator Cory Gardner—along with other Republican Senators from across the country—sent a letter to Senate Majority Leader Mitch McConnell urging him to consider including “policies that will bolster jobs and innovation across the clean energy economy including renewables, nuclear, carbon capture, efficiency, advanced transportation, and energy storage.”

While Senators Gardner and McSally and others recognize the importance of addressing immediate needs, the letter urges a focus on opportunities that will address the nation’s current economic difficulties while also yielding long-term benefits.

As they point out, the clean energy sector has already proven that it can do both. Pre-COVID, job growth in the clean energy sector outpaced the U.S. economy by 70 percent over the past five years, employing millions of Americans across the country. While COVID-related layoffs and furloughs have hit the industry hard, federal investment in the clean energy sector can renew this critical and sustained job growth, helping to jump-start America’s economic recovery while ensuring continued U.S. energy independence and diversification. 

As the Senators point out in their letter, “continuing to scale up the clean energy sector would grow jobs, support U.S. energy independence, economic resilience, and will be essential for global competitiveness.” 

The Western Way supports this commonsense call for prudent investment in a sector that will yield benefits across the country and especially in the rural west where a majority of our country’s prime clean energy resources are located. 

Tucson Electric Power Announces Robust Sustainability Goals

Tucson Electric Power (TEP), one of Arizona’s largest utilities serving 415,000 customers in the Tucson metropolitan area, now joins Arizona’s two other major utilities—Arizona Public Service and the Salt River Project—in announcing robust sustainability goals. In its latest Integrated Resource Plan, filed with the Arizona Corporation Commission on June 26, TEP calls for a “dramatic expansion of clean energy resources,” with 70 percent of its generation capacity projected to come from solar, wind, and energy storage systems by 2035. TEP calls its plan an “ambitious, realistic vision for a sustainable energy future.”

According to TEP, the move toward more storage and renewable generation was inspired by both consumer demand and economic considerations. As TEP spokesman Joseph Barrios explained, "We know our customers count on us to make smart energy decisions, providing more sustainable service that remains reliable and affordable. The costs of investment in solar and wind resources continues to decrease while energy storage technologies are projected to become more reliable and cost effective over time.”

In addition to reducing carbon emissions by 80 percent, the goals outlined in TEP’s latest IRP will reduce water consumption by 70 percent. The plan also includes a timetable for closing two coal-fired power plants in the next 12 years—a move that will leave Arizona with just two coal plants after 2040.

The announcement by TEP, coupled with announcements earlier this year by APS and SRP on their own sustainability goals, will have a dramatic impact on Arizona’s ratepayers and the environment. Even though the Arizona Corporation Commission has yet to act on updates to Arizona’s Energy Rules, Arizona’s three largest private utilities are now forging ahead toward a more sustainable and renewable energy future for Arizona.

AZ Corp Commission Joins Other State Regulators and Policy Makers Opposing FERC Petition

This week, the Arizona Corporation Commission joined dozens of other state regulators and policymakers to oppose a petition filed with the Federal Energy Regulatory Commission (FERC) seeking to bring net metering under federal jurisdiction. If granted, the petition, filed in April by a group out of New England, would upend two decades of legal and regulatory precedent, in effect taking away the power of the states to oversee their own tailored net metering policies and limit states’ ability to effectively manage their own energy portfolios.

The Arizona Corporation Commission recognized the importance of this issue, voting unanimously on June 11 to submit a letter in opposition to the petition. As the ACC pointed out in its June 15 letter, Arizona was one of the first states with a net metering policy, which, like programs now adopted across the country, allows retail electric customers to receive credit for self-generated electricity over the amount they use in a given billing cycle. Bringing the authority to regulate net metering under federal jurisdiction would upend these programs in Arizona and dozens of other states.

The proper authority for regulating energy policy lies with the states. As Arizona’s Corporation Commissioners stated in their letter, “States are in the best position to assess local conditions and make the types of determinations on cost allocations and retail rates that are the subject of [the petition].” Hopefully the FERC agrees.

Western States Legislators and TWW Lead the Way on Energy Federalism

State legislators from Arizona, Colorado, Nevada and Utah and The Western Way recently submitted comments to the Federal Energy Regulatory Commission, requesting that energy policy making stay at the state level and not be federalized.  The longstanding precedent of states having jurisdiction over their own energy policies was called into question by a petition submitted to FERC from the New England Ratepayers Association (NERA).  The April 14th NERA petition sought to move the authority to set net metering policies under federal FERC oversight. 

TWW’s Arizona Director Doran Miller noted why FERC should decline the NERA petition on the basis of states rights to set their own unique and effective energy policies:

“According to long-standing precedent, individual states have jurisdiction over their own energy policies. State regulators and elected officials who set state energy policies understand the resources and needs of their states and are accountable to voters.  Because no two states are the same, this ensures that each state’s energy policies are tailored, responsive, and effective.”

Moving the authority to regulate net metering to the FERC would, by contrast, impose a one-size-fits-all solution which would, by definition, fail to account for the unique make-up and characteristics of the various states.

State legislators from western states also weighed in with opposition to the filing from the perspective of elected officials responsible for energy making policies and directly accountable to voters.  

“By allowing net metering policy to continue to be set at the state level, you ensure that all stakeholders will continue to be represented. In contrast, stripping state regulators and policymakers of their jurisdiction over net metering will take away ratepayer’s ability to petition their local elected officials on this issue and could ultimately impact other state-controlled energy polices in the future.”

- Arizona State Representative Joanne Osborne - Full Comments

“Our country’s electric utility sector is changing at a dramatic rate due to technological innovation and market demand. This change will only accelerate and nimble state-based authority over major energy policies is necessary to navigate these changes. “

- Colorado State Senator Kevin Priola - Full Comments

“Nevada’s legislature, which is directly accountable to the citizens of the state, regularly engages in policymaking on energy and ratepayer issues.  Moving net-metering to FERC’s federal jurisdiction would take away rate payer’s ability to petition their local elected officials on this issue and could endanger long-term contracts that have been entered into between ratepayers and utilities.”  

- Nevada Assemblyman Tom Roberts - Full Comments

“Congress wrote the Federal Power Act “to be a complement to and in no sense a usurpation of State regulatory authority.” If FERC grants NERA’s petition, it would overturn long-held legal precedent and take away decision-making power that has long belonged to the states, including the authority to set rates, terms, and conditions for programs. “  

- Utah State Representative Stephen Handy - Full Comments

Western States Utilities Planning for an Extended Day-Ahead Energy Market

Stakeholders in Arizona and other western states are actively discussing how to expand the current voluntary Energy Imbalance Market (EIM) to an Extended Day-Ahead Market (EDAM)—a move that would significantly increase the emissions reductions and cost-savings that the current EIM is already generating. 

The EDAM concept is similar to the EIM in that it is voluntary, provides additional incremental benefits, and uses existing infrastructure. Rather than replace the EIM, EDAM would serve as an additional market service that would realize additional energy reductions and cost savings by optimizing dispatch from limited real-time trading to almost 100% of the Western energy market.

Two of Arizona’s largest utilities, Arizona Public Service and Salt River Project, are participants in the Western Energy Imbalance Market, and have already seen the benefits that participating in a regional energy market can generate. APS Vice President for Resource Management Brad Albert agrees, saying, "This evolution of the wholesale market can have even more benefits by optimizing transactions on a day-ahead basis and more cost-effectively integrating higher levels of renewables." According to a 2016 study, “a full regional marketplace could potentially deliver savings of $1.5 billion per year from optimized dispatch, shared transmission costs and reduced reserve needs.”

Before EDAM can be realized, however, important governance, transmission, and sufficiency issues must be resolved. For example, with respect to transmission, APS’s Brad Albert has acknowledged issues around transmission capacity and compensation, saying, "We're trying to move something complicated ahead because it will benefit our customers, but it will not be easy."

While we are unlikely to see EDAM in the near future, it is encouraging that stakeholders are actively working on innovative solutions to these critical components, and participants appear optimistic that they can ultimately be resolved.

NV Assemblyman Tom Roberts says big energy projects will help state bounce back from COVID-19

In a piece for the Elko Daily Free Press, Assemblyman Tom Robert (R-Las Vegas) highlighted how the recent approval of the Gemini Solar project by the Trump Administration is the type of game-changing infrastructure projects Nevada needs to put people back to work and jumpstart the economy. 

The full piece from Assemblyman Roberts is below as it originally appeared in the Elko Daily Free Press on May 21, 2020:   

Big energy projects will help Nevada bounce back from COVID-19 lockdown

As Nevada and the rest of the country recovers from the COVID-19 pandemic and lockdown, every level of government – federal, state and local – should be doing everything possible to create jobs and jumpstart the economy.

The Trump administration, Congress, and the Federal Reserve have already injected trillions of dollars into the economy to offset some of the impacts of the COVID-19 shutdown. But a strong recovery will also require huge, game-changing infrastructure projects that put people to work in the short term and make our economy stronger over the long haul.

Remember, more than 440,000 Nevadans have lost their jobs during the COVID-19 lockdown. To rebound stronger than ever, we will need all of those jobs back – and then some. For leaders in government and the private sector, this means one thing: Think big.

For a great example of thinking big, look no further than the Trump administration’s recent approval of the Gemini Solar Project, to be built roughly 30 miles northeast of Las Vegas. This $1.1 billion clean energy project is massive – covering up to 7,100 acres or more than 11 square miles. For scale, that’s 2.5 times the size of McCarran International Airport.

The Trump administration’s approval of the Gemini project was necessary because it will be built on federal land. According to the Department of the Interior, Gemini will create an average of 500 to 700 construction jobs over the next two years and support a further 1,100 jobs throughout the local community. More than $700 million in wages and economic output will be generated during the construction phase, which is expected to last until 2022.

And with 690 megawatts of electric generating capacity, Gemini is the largest ever solar project in U.S. history – and the eighth biggest solar facility in the world.

“Our economic resurgence will rely on getting America back to work, and this project delivers on that objective,” Interior Secretary David Bernhardt said when the approval was announced in early May.

When finished, Gemini will also be a vital piece of infrastructure for Nevada, adding both capacity and stability to our power grid. In addition to producing clean, carbon-free electricity from the sun, Gemini will also have another 380 megawatts of battery storage. This breakthrough technology will allow the facility to generate electricity during the middle of the day and keep it stored for several hours until it’s needed during the early evening, when power demand surges all across Nevada.

The Gemini project will take Nevada’s national leadership on clean energy to a new level.

We already generate more than 25 percent of our electricity from solar and other renewable sources, according to the U.S. Energy Information Administration. Our existing renewable power infrastructure has contributed $7.9 billion in economic activity and generated more than 12,000 jobs since 2006, according to a joint report from the Carson Valley Chamber of Commerce and The Western Way, a think tank that promotes free market solutions to environmental challenges. Investment and job creation in the renewable energy sector has also generated more than $150 million in taxes for Nevada, with most revenue going to K-12 public schools and local governments.

Before COVID-19, Nevada’s energy sector played an important role in our economy. Coming out of the lockdown, developing our own energy resources can help us emerge from this crisis stronger than we were before.

In this effort, we have a strong partner in President Trump. Federal lands play a critical role in the Trump administration’s doctrine of energy dominance, which calls for increased domestic production from all sources – conventional and renewable – to maintain our independence from hostile energy-producing nations, like Saudi Arabia and Russia.

This is a major opportunity for Nevada, because in addition to abundant solar energy resources, we also have the highest percentage of federal land of any state in the nation.

Federal lands, clean energy, national security, job creation, and stronger infrastructure: The Gemini project combines them all. It is exactly the kind of project – and the kind of thinking – we need in these challenging times.

Let’s work together to make more projects like this one happen and bring jobs back to Nevada.

Tom Roberts, R-Las Vegas, represents District 13 in the Nevada Assembly.