Arizona Business Group Opposes ACC Takeover Bills

The Greater Phoenix Chamber of Commerce voted unanimously to join other business interests in opposing legislation which would upend the authority of the Arizona Corporation Commission.

The bills would create an uncertain regulatory climate for businesses by attempting to take away the ACC’s constitutional authority to set energy policy.

Creating this uncertainty while the state comes back from the COVID-19 induced economic slow-down risks needed economic development opportunities and crucial jobs.

Two Separate National Polls Show Support for Pro-Market Commonsense Solutions to Energy and Climate Challenges

The Conservative Energy Network (CEN) and Citizens for Responsible Energy Solutions (CRES) released the results of two separate polls in January which both show that American voters support approaches that allow markets and businesses to increase clean energy production. 

“Clean energy is not a red vs. blue issue – it’s a red, white and blue issue,” said CRES Executive Director Heather Reams. “American voters understand that when all solutions are on the table and regulations are streamlined, our economy is stronger, our environment is healthier, and our nation maintains its crucial energy independence from all other nations. The Energy Act of 2020 pointed our country in the right direction, but we cannot and should not rest on our laurels. There is no better time for continued Republican leadership on meaningful, bipartisan proposals that aim to mitigate climate change while simultaneously supporting American jobs and technology advancement.”

“CEN polling shows that while voters overwhelmingly want more clean energy, they don’t want progressive policies that grow government and give environmentalists a blank check—policies like the Green New Deal,” said Mark Pischea, CEN President and CEO. “They want conservative policies applied to support the growth of our clean energy economy, and more and more they are showing support for the leaders who embrace commonsense, market-focused policy initiatives to usher in a clean energy future. I’m optimistic that opportunity exists for bi-partisan solutions that will generate enduring clean energy policy—particularly at the state and local levels.”

Key Findings from the CEN Polling include:

1. The numbers are clear. Eighty-four percent (84%) of voters support the government accelerating the development and use of clean energy in the United States.

2. These data consistently show that over 70% of voters favor the government taking steps to reduce emissions of gases like carbon dioxide and methane emissions that cause global climate change.

3. The majority of voters (55%) say climate change was important to how they voted in the November 2020 election.

4. Nearly three-quarters of voters say it is important that a candidate for political office shares a similar opinion on clean energy issues.

5. Voters trust the Democratic Party with energy and environmental issues over the GOP.

6. Politically, voters are decidedly more likely (68%) to vote for a Republican candidate who embraces an innovation-based approach to addressing climate change.

7. Congressional Republicans would be advised to embrace a conservative approach to addressing clean energy by prioritizing technology innovation and competition.

8. Clean energy is an electoral winner, two-thirds (68%) of voters would vote for a candidate who supports clean energy development like wind and solar 

Key Findings from the CRES Polling Include:

1. Despite the overall focus on health and the economy, Americans overwhelmingly support the federal government taking action to accelerate the development and use of clean energy and they support requiring businesses to reduce emissions that contribute to air pollution.

2. Voters across party lines give strong support to four different proposals to expand the federal government’s commitment to clean energy.

3. Despite attacks on fossil fuel resources, a majority of Americans support an “all of the above” energy strategy to achieve energy independence. (And most Americans do not believe the country is energy independent.)

4. There is strong support across party lines for greater transparency from companies that produce emissions that harm the environment. At least two-thirds of Americans support each one of the four proposals tested.

5. By wide margins, voters say they would have more favorable impressions of elected officials who support government action to reduce carbon pollution to combat climate change/encourage the development of clean energy.

6. While the economy/jobs, Covid and health care are still top of minds for voters, Americans support accelerating clean energy development and favor a number of “low-hanging fruit”/“no regrets” policy ideas regarding natural climate solutions (for example, Trillion Trees or voluntary Ag carbon markets, etc.). And even Democrats support the streamlining and reforming of onerous regulations that slow the transition to clean energy, including wind, solar and hydropower.

Read the full survey results from CEN and CRES. 

Opinion: Rural power utilities must have freedom to escape Tri-State

This opinion piece from TWW’s Colorado State Director Greg Brophy, originally ran in The Colorado Sun on January 25, 2021, and can be accessed here.

Opinion: Rural power utilities must have freedom to escape Tri-State

If rural cooperatives want to pursue more choice outside the Tri-State system, electricity regulators should absolutely let them do so.

By Greg Brophy

As someone from rural Colorado, I can say the benefits of living here clearly outweigh the challenges. But one thing I cannot stand is the double standard that applies to many services. 

For some reason, people in rural communities are told they have to accept fewer choices and higher prices than their big-city counterparts. 

The cost of electricity is a perfect example. Right now, there are dozens of communities in Colorado, Wyoming, Nebraska and New Mexico that are paying much higher electricity rates than they should. 

The vast majority of their electricity comes from the Tri-State Generation and Transmission Association, which holds a series of exclusive long-term supply contracts with 42 rural electric cooperatives across the four states.

Tri-State was actually created by rural cooperatives almost 70 years ago to provide electricity at a lower price than the cooperatives could generate or purchase on their own. But in recent years, in my opinion, Tri-State has completely lost sight of this mission.

While wholesale electricity rates have been falling across the power sector, because of low-cost natural gas turbines and renewables like wind and solar, electricity on the coal-heavy Tri-State system keeps getting more expensive. Since 2011, for example, the average cost of electricity for Tri-State members has gone up 16%, from roughly $65 per megawatt-hour (MWh) to $76 per MWh.  

This puts electric cooperatives and their customers at a huge disadvantage. For example, United Power – a cooperative in northern Colorado – says that its members are paying 25% to 35% more than the customers of neighboring utility companies. Why? Because United Power is forced to buy higher cost electricity from Tri-State, instead of accessing cheaper sources in the wholesale power market or generating its own power at a lower cost.

In effect, Tri-State has a monopoly, and has stubbornly resisted the trend towards newer and cheaper power sources. Tri-State has propped up its aging fleet of coal-fired power plants by taking on huge amounts of debt, and now payments on that debt are driving up electricity prices for rural cooperatives.

As the Colorado director of The Western Way – a conservative nonprofit that seeks pro-market solutions to environmental challenges – I have spent years working with community leaders, state legislators and electricity regulators to shed light on this unacceptable situation. 

Our organization recently informed state electricity regulators that Tri-State’s debt was now equal to 75% of its total value, making it much more highly leveraged than investor-owned utility companies like Xcel Energy. 

In a legal filing to the Colorado Public Utilities Commission – submitted in early October – we also warned that because of this high debt load, even more rate hikes on the Tri-State system are coming.

In November, a report from the Institute for Energy Economics and Financial Analysis warned how bad things could get. Over the next 30 years, the report predicted Tri-State rates will surge another 55% to a shocking $118 per MWh.

Even if this prediction is too pessimistic, it’s clear that United Power and other cooperatives served by Tri-State are paying too much for their electricity, with almost no hope of that changing – and this is why a growing number of rural electric cooperatives are leaving the Tri-State system.

The movement started with Kit Carson Electric Cooperative in New Mexico in 2016, followed by Delta-Montrose Electricity Association in Colorado in 2019. To escape their outdated, multi-decade contracts with Tri-State, these rural cooperatives paid tens of millions of dollars in so-called “exit charges.” It wasn’t easy or cheap, but the freedom to buy cheaper electricity from a range of competing sources will result in long-term savings.

Now other cooperatives in the Tri-State system, including United Power, are also looking for the exits. But Tri-State is trying to keep them captive, using state and federal regulatory maneuvers to slow the process down, impose prohibitive costs and keep a lid on damaging information that could trigger a stampede of other departures. 

This approach is completely upside-down. Remember: Rural electric cooperatives created Tri-State. And they did so to provide cheaper electricity than individual rural cooperatives could generate or purchase on their own, not more expensive electricity. 

Therefore, if rural cooperatives and the communities they serve want to pursue more choice and competition outside the Tri-State system, electricity regulators should absolutely let them do so. 

But Tri-State, which is supposed to represent the interests of rural communities, evidently believes those communities should pay higher prices and have fewer choices than people who live in big cities and the suburbs.

That is more than ironic – that is a betrayal.

Greg Brophy, a former Colorado state legislator and a fourth-generation corn and melon farmer from Wray, is the Colorado director of The Western Way.

The Western Way Supports the Arizona Corporation Commission’s Energy Rules Package

The Western Way submitted written and oral comments this week supporting the Arizona Corporation Commission’s Energy Rules Package. Highlights include:

• The proposed rulemaking package now under consideration is the product of an extensive and bipartisan stakeholder process. The proposed rules will ensure Arizona continues to be a national leader in clean energy by putting us on a path to produce 100 percent carbon-free electricity by 2050. The package also includes a critical update to Arizona’s energy efficiency standard that will open the door for even greater use of existing energy efficiency measures as well as innovations in home storage, automation and smart grid technology, and provide the kind of long-term market certainty necessary to drive increased innovation in energy efficiency technologies. Finally, the proposed rules package includes battery storage policies that will be important as we continue to improve and implement energy storage technology.

• Another important facet of the Energy Rules package that has not received as much attention as the long-term goals are the updates to the Integrated Resource Planning process. The changes include a new, more transparent advisory committee made up of stakeholders, including ratepayers, to approve future load forecasts and a competitive “all-source” bid process which will drive lowest cost resources and benefit consumers. Over time, these modernizing changes will significantly benefit ratepayers by ingraining transparency, competition and market forces in the resource planning process.

• Arizonans are also supportive of increasing renewable energy utilization. Recent polling conducted by The Western Way found that 87 percent of Arizona voters believed that government should play a role to accelerate the development and use of clean energy, and 60 percent of Arizona voters would support the creation of proactive low emission solutions to ensure compliance with federal Clean Air Standards—a welcome byproduct of implementing more robust clean and renewable energy rules.

• There are also important economic benefits—especially rural economic benefits—to adopting more robust renewable energy goals. A 2019 economic impact study released jointly by The Western Way and Yuma County Chamber of Commerce found that 34 rural renewable projects constructed in Arizona from 2001 to 2017 resulted in significant economic benefits to rural Arizona, including $9.4 billion contributed to the Arizona economy; 17,971 Arizona jobs; $1.2 billion in wages to paid to Arizona employees; and $16.7 million in state and local tax revenues benefiting Arizona. The study also found that that rural renewable facilities continue to contribute to the Arizona economy after construction is complete.  Annually these projects contribute an estimated $63 million and sustain over 700 jobs with combined wages of over $33 million. The facilities also contribute nearly $1 million in annual property tax revenue benefiting Arizona schools. The market signal and long-term certainty that would accompany a goal of 100 percent clean energy by 2050 would therefore also support and incentivize important rural economic development efforts in Arizona. 

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.