Don't let a poorly drafted tax credit hobble Arizona's growing electric vehicle industry

This piece from TWW’s Jaime Molera and the Greater Phoenix Chamber CEO, Todd Sanders originally ran in the Arizona Republic on December 22, 2021 and can be accessed here.

Don't let a poorly drafted tax credit hobble Arizona's growing electric vehicle industry

Opinion: Tax credits can help electric vehicle manufacturing. But those in the Build Back Better bill would hurt Arizona's growing EV industry.

By Todd Sanders and Jaime Molera

Recently, we participated in an outstanding trade delegation of Arizona business, government and higher education officials to Mexico City.

A significant part of this mission was spent meeting with many Mexican federal administration and legislative leaders, including Secretary of the Economy Tatiana Clouthier. 

One shared area of concern is a major component of President Biden’s Build Back Better Plan that incentivizes electric vehicle (EV) purchases, albeit only for certain union-backed entities.

Incentives and tax credits, if designed correctly, can be an effective tool to accelerate transportation electrification and adoption, as well as strengthen EV manufacturing and international supply chain cooperation to put North America on a path to compete with China.

This would be particularly beneficial in Arizona, where we are already seeing tremendous growth in the EV sector. Mexico, too, is seeing tremendous growth and investment in EV and component part manufacturing.

Bill would subsidize 1 vehicle not in production

Unfortunately, the House-passed version of President Biden’s budget reconciliation spending bill includes an EV tax incentive proposal that will, if passed, damage Arizona’s burgeoning EV manufacturing sector by disrupting trade with Mexico and the integrated supply chains on which our EV manufacturing relies.

The credit proposed in the Build Back Better Plan would raise EV credits up to $12,500 per vehicle, including a $4,500 credit for American union-made vehicles, plus $500 for American-made EV batteries.

Problematically, the tax credits would only apply to EVs assembled in the United States with at least 50% U.S.-made parts. If the proposal passes, only the Chevrolet Bolt EV and Bolt EUV, neither of which are currently in production or available for purchase, would be eligible for the credit.

Unsurprisingly, both the Mexican and Canadian governments are actively lobbying against the tax credits, saying they contravene the United States-Mexico-Canada (USMCA) trade deal.

Representatives from both countries, with whom the United States shares well-integrated supply chain cooperation with economic benefits for all of us, have expressed disappointment that the United States would do something to significantly undermine the trade relationship with its main commercial partners.

Countries and manufacturers are opposed

But not just Mexico and Canada are opposed – France, Germany, Italy, Japan and South Korea also opposed the provision and sent a message to the Biden administration pointing out that the proposed tax credit will run afoul of international trade laws. 

Moreover, other major automotive manufacturers weighed in against the provision, including BMW, Daimler, Honda, Hyundai, Tesla and Toyota, whose companies engage in EV production but do not have a unionized workforce and would not be eligible for the full credits.

We in Arizona know how critical supply chain cooperation is to our economy. Mexico is Arizona’s largest trading partner by a factor of four, with two-way trade representing more than $16 billion in 2018.

Arizona and Mexico are leaders in the automotive industry, with net trade of nearly $1.7 billion in auto parts annually, together producing 1,488 vehicles daily and supporting more than 50,600 employees.

For years Arizona worked with government and business leaders to improve border infrastructure in a way that supports international trade at our six border ports of entry, including infrastructure upgrades to the Nogales, Ariz., port of entry that resulted in nearly $60 million of private investment for warehouses and distribution centers.

Let's transform the industry, not hobble it

At a time when we can significantly transform the EV industry, we should be looking at policies that support Arizona EV manufacturing and the integrated supply chain on which this sector relies, thereby increasing the global economic competitiveness of North America as a whole. 

As Luz María de la Mora, the undersecretary for foreign trade in Mexico’s Secretariat of Economy put it, “By disarticulating supply chains in an emblematic sector that generates great opportunities in the three countries, we go against a competitive and integrated North America.”

It seems clear that this tax credit, as currently drafted, is more focused on protecting labor unions than it is on incentivizing EV production and bolstering the global economic competitiveness of the United States.

Even though the wider Build Back Better bill appears to be on life support, we urge our state’s congressional delegation, particularly our U.S. senators, to ensure that this portion of the legislation is not included in any ultimate deal.

Todd Sanders is president and CEO of the Greater Phoenix Chamber. Jaime Molera is former Arizona state school superintendent and the Arizona director for The Western Way, a nonprofit organization that builds support for market-driven solutions to environmental challenges.

Utah’s Congressional delegation is building a constructive path forward on the environment

This piece from Steve Handy originally ran on Utah Policy on December 21, 2021 and can be accessed here.

Utah’s Congressional delegation is building a constructive path forward on the environment

By Steve Handy - December 21, 2021

In Utah, conservative principles and protecting the environment go hand in hand. Utah’s history and culture embraces the responsible stewardship of our land, water and air. But historically conservative leaders in Washington D.C. have been slow to recognize the importance of environmental issues, too often expending all of their energy opposing extreme environmental proposals like the Green New Deal rather than creating proactive policies that support the environment and enhance the economy.

Thankfully, things are changing. More and more, conservative officials in Washington D.C. are listening to Western conservatives concerns on these key issues. This could mean a breakthrough on real challenges affecting our state economy, like climate change, forest management, and water policy, where politicians on the left and right need to find common sense solutions rather pushing extreme positions. 

For proof, consider the new Conservative Climate Caucus that was recently formed by Congressman John Curtis and now includes the entire Utah congressional delegation – Congressmen Christ Stewart, Burgess Owens, and Blake Moore.  In total, this House caucus includes nearly 70 members – making up a third of all the Republicans in the House.    

Instead of creating overreaching regulatory programs that require massive federal spending, like those on the far left keep advocating for, the goal of the Conservative Climate Caucus is pragmatic. It is focused on private sector innovation that is driven by the free market and utilizes American resources and R&D investment and innovation. These programs aim to not only lower emissions but also keep energy affordable.  In other words, this caucus is finding solutions that both enhance the U.S. economy and support the environment. 

Conservative leaders in Washington D.C. support conservatives taking a proactive role on environmental issues as well.  House Republican Leader Kevin McCarthy hosted a three-day Energy Innovation Agenda event earlier this year which brought together conservative lawmakers, energy sector officials and conservation groups. They discussed dozens of GOP legislative proposals “to deliver a cleaner, safer, and healthier environment while also growing our economy.”

These proposals focus on real solutions to actual climate challenges, such as securing a domestic supply chain for the critical minerals used in wind turbines, solar panels and electric cars; streamlining the permitting process for clean energy and infrastructure projects; promoting zero-carbon nuclear power especially in the developing world; and maximizing the use of agriculture, forestry and other natural solutions to pull carbon out of the atmosphere.

Conservative proposals to diversify U.S. energy sources not only supports the economy, they are sound environmental policy as well. Traditional energy sources produced in America are cleaner and better for the environment. For example, Russian natural gas exports to Europe and China have more than 40% higher lifecycle emissions than liquefied natural gas exports from the U.S. Likewise, mining coal in China releases 33% more methane than coal produced here.

“We can develop and build new technology at home that is clean, affordable, and exportable,” said McCarthy, the GOP House leader. “Unlike Democrat plans, ours don’t kill American jobs or make American energy more expensive through increased taxes and regulation.”

According to a new report by The Western Way, Utah’s renewable energy sector is a growing force driving the state’s rural economies with $5.3 billion in total output, 4,368 construction jobs, an annual output of $154.4 million, and nearly $25 million in annual property tax revenue.  

Utah’s mining sector could also receive a boost from the policies as well. According to the Utah Geological Survey, our state hosts 28 of the 35 critical minerals used “in clean-energy technologies and high-tech devices.” Our state already produces six of them and Utah “is poised for further development of domestic critical mineral resources,” the UGS says.

But we will need strong, commonsense environmental regulations and permitting procedures to overcome unfounded opposition to mining so that we can unlock this potential. By connecting these projects to responsible climate change policy, conservatives are creating proactive solutions that can earn bipartisan consensus to support mining investment and mining jobs in states like Utah.

Congressman Curtis, recently made a statement that sums up why we must advance solutions to actual challenges facing our environment, saying  “I had a great Scoutmaster and my father loved the outdoors, and they would take me into the outdoors and I could just see the beauty of God’s creation,” he said. “I just vowed to myself that I would do all we can to make sure my kids and grandkids have that same opportunity.” 

Western conservatives like Utah’s congressional delegation are right to actively engage on U.S. energy and environmental policies. Creating real solutions to actual environmental challenges not only supports Utah’s special environment but boosts our state’s economy and jobs. Utah should urge these elected officials to continue to make this a priority in Washington DC.

Steve Handy is the state representative for Utah House District 16 that covers part of Layton, Clearfield and Hill AFB. He has been a member of House since 2010. He is a member of Utah’s Clean Air Caucus.

AZ: Proposed energy rules would strengthen state’s competitive edge

This piece from TWW’s Doran Miller originally ran in the Arizona Capitol Times on December 11, 2021 and can be accessed here. Update, the ACC did not take a vote on the Energy Rules in it’s December 2021 meeting and will hear the issue in 2022.

Proposed energy rules would strengthen state’s competitive edge

Doran Miller

On Wednesday, the Arizona Corporation Commission is scheduled to vote on a package of updated clean energy rules that is years in the making. The package now under consideration, which benefits from several recent amendments, is the product of an extensive and bipartisan stakeholder process with significant support from individuals and businesses large and small from across Arizona. Most importantly, these rules allow Arizona to remain competitive with other states by providing the type of robust clean energy commitment that businesses demand before bringing jobs and substantial investment into a state while at the same time providing key protections to make sure the public does not pay more for clean energy. 

The current standard, set by the Arizona Corporation Commission back in 2006, only requires regulated electric utilities in Arizona to generate 15% of their energy from renewable sources by 2025. While Arizona’s standards may have been competitive when adopted, Arizona has since fallen behind neighboring states. Falling behind on this metric has real world consequences that make Arizona less competitive than other states at attracting key investments and jobs. More and more, the marketplace requires that a state provide access to robust clean energy options, or it will be left off the list for economic development projects and will be out of the running in the heated competition to attract the businesses of the future. That is why major corporations like Apple, Oracle, Microsoft, PayPal and others support updated clean energy standards.   

The current package will give Arizona an advantage when competing for economic development opportunities by repositioning Arizona as a national leader with a 100% clean energy goal by 2070. To reach that goal, the new rules take a carbon-reduction approach, allowing utilities to meet the carbon-free requirement by using renewable energy as well as nuclear power and energy-efficiency measures, rather than a technology-based requirement, which would have required utilities to use a set amount of renewable energy to reach the goal. By setting a standard of 100% carbon-free by 2070, the rules package gives industry more time and flexibility to design their energy portfolios in a way that takes into consideration costs and externalities.  

Importantly, the new energy rules will position Arizona for success in the ongoing competition for economic development while including safeguards to protect the public. Chief among these protections is a waiver provision that allows the Commission to excuse compliance with the energy rules if the Commission finds that there is good cause and that doing so will not harm the public. In practice, this means that if the Commission determines compliance with the rules will be too expensive or otherwise cause harm, it can issue a waiver.  

In addition to the waiver provision, the amendments added by Commissioner James O’Connor provide an additional safeguard to ensure the Commission has a complete understanding of the cost of complying with the rules. This provision requires utilities to analyze and provide to the Commission information on the relative costs of installing clean energy resources in compliance with the rules as compared to an alternative “lowest-cost” portfolio developed without regard to the rules. If the Commission finds that the costs do not favor the clean energy resource portfolio, the Commission can utilize the waiver provision. While clean energy is currently the lowest cost energy option, this provision enables the Commission to ensure ratepayers are protected from unduly burdensome costs if necessary.  

The proposed rules package also includes critical updates to the Integrated Resource Plan and purchased power agreement processes—including competitive bidding, all-source RFP processes, and prudency reviews—that will introduce more transparency and competition into the overall process.  These modernizing changes will significantly benefit ratepayers by ingraining transparency, competition, and market forces in the resource planning process. These are important protections for ratepayers and will lead to a more efficient and effective power delivery system for the state of Arizona. 

Perhaps most critically, the package will provide the necessary long-term market certainty to support utilities as they work to increase clean and renewable generation in Arizona and meet their own renewable energy goals, drive technology and innovation in the energy sector, and drive down costs for consumers. They also provide a guarantee that Arizona will be able to meet the clean energy demands of investors and businesses who want to locate in Arizona, spur critical rural economic development efforts, and reflect what Arizonans want to see from our state’s energy regulators. 

The Arizona Corporation Commission now has a critical opportunity to accelerate clean energy innovation and adoption even further at a time when it would be particularly impactful to Arizona’s economy. The fact is that modern businesses do not consider investment in states that do not provide access to ample clean energy options. These rules, if adopted, will strengthen Arizona’s competitive advantage over its neighbors, keep energy costs low and predictable, and provide the long-term regulatory and market certainty businesses and utilities need. Arizona’s Corporation Commissioners should feel confident in voting to approve them.  

Doran Arik Miller is the Arizona Director of The Western Way, a nonprofit organization that builds support for commonsense market-driven solutions to environmental challenges that support the economy and improve the environment.   

CO: TWW Supports Xcel ERP Settlement Agreement

TWW’s Colorado State Director, Greg Brophy, provided written and oral testimony in support of Xcel’s Electric Resource Plan which is currently being heard by the Colorado Public Utilities Commission.

TWW supports the settlement agreement between the parties, which: "strikes an important balance between rapidly and immediately adopting the latest technology for generating electricity and ensuring that Colorado customers of Xcel Energy enjoy the reliability of electrical supplies that they deserve.”

See below for the full letter of support.

AZ: We need a statewide renewable energy plan

The following opinion piece by TWW’s Doran Miller and Jaime Molera originally ran in the Arizona Capitol Times on November 20, 2021 and can be accessed here.

Arizona’s economy is booming. Even with the Covid economic downturn, Arizona’s economy is making steady gains. 

A recent study by University of Arizona’s Eller College of Management found that Arizona’s recovery from the pandemic gained significant momentum in the second quarter of 2021, with jobs, home sales, and construction showing strong upward trajectories. The positive outlook predicts Arizona jobs to regain pre-pandemic peak in the fourth quarter of this year, and the long-run outlook calls for continued strong growth with Arizona forecasted to generate job, income, and population gains outpacing the rest of the nation.  

Over the next 30 years, Arizona’s population is expected to surge to 10 million people, and the state is expected to add at least 1.5 million jobs in that time.  

As we experience this tremendous population and economic growth, we need to make sure we have sufficient energy to power our economy. That said, we all recognize that there are environmental impacts to traditional methods of energy generation. Innovation in renewable energy, including solar, wind, hydro, and geothermal, as well as other clean sources such as hydrogen, nuclear, carbon capture, and advanced energy storage, are demonstrating that there is a path to a low-carbon future, and that those methods of clean and renewable energy generation also help drive economic growth and create jobs. 

To put this in perspective, renewables represent a $64 billion market in the United States. In Arizona, we are witnessing the growth of this market. Our state is emerging as a national leader in technology and innovation, including developing and adopting advanced energy solutions for our advanced economy. From solar energy to zero emissions vehicles to research in sustainability and infrastructure improvements, Arizona’s economy is benefiting from this industry.  

Some of Arizona’s largest businesses, including Apple, PepsiCo, and Target, have applied positive pressure on Arizona utilities to provide them with clean and renewable energy options, and Arizona’s three largest utilities have now committed to generating most of their energy from carbon-free sources in the coming decades. 

Arizona has become a hub for the zero-emissions vehicle industry, with companies like Lucid Motors, Nikola Corporation, ElectraMeccanica and others within the supply chain establishing a strong and growing presence in the state. Nikola is also spearheading research and development in the future of the hydrogen economy. We have companies like First Solar taking an innovative and sustainable approach to solar power, and Kore Power is doing the same with battery storage.   

The clean energy and innovation sectors are already playing a significant role in driving Arizona’s economy. But if we want this trend not just to continue but to accelerate, we need a coordinated and strategic statewide approach that not only recognizes the role clean energy plays in economic development but also leverages the leadership and innovation of the private sector. That is going to require the right policy framework, incentives, and opportunities for public private partnerships, including updated and modernized energy rules from the Arizona Corporation Commission; incentives for greater adoption and deployment of energy efficiency measures and technologies; coordinated investment in statewide infrastructure projects for zero emission vehicles and other types of renewable energy infrastructure; and investment in research, development, and commercialization of new technologies. 

It is also imperative that Arizona has a comprehensive statewide plan for other impacts of the changing energy landscape. That means developing a coordinated approach on issues like electric vehicle infrastructure and energy storage to ensure that rural Arizona has a seat at the table and that new technologies can be rapidly adopted by consumers and utilities alike.     

Arizona is witnessing tremendous success in expanding our economy. While a competitive business climate with low taxes and limited regulatory intrusion has drawn businesses to our state, now is the time to examine how better coordination and leadership from our businesses and policymakers at all levels can lead to even greater success.    

Doran Arik Miller and Jaime Molera are the Arizona directors of The Western Way, a nonprofit organization that builds support for commonsense market-driven solutions to environmental challenges that support the economy and improve the environment. 

Boyer: Arizona's energy mix is best set by the experts. That's not the Legislature

Arizona State Senator Paul Boyer (Legislative District 20 in Glendale and North Phoenix) argued why the legislature (himself included) should not have the final say on Arizona's energy mix in an opinion piece for the AZ Central that ran on November 17th.

Sen. Boyer detailed how a legislative proposal that he opposed this year would have "caused a massive upheaval in the regulation of the state's energy policy and thus every single Arizonan's electric bill."

Sen. Boyer noted that the Arizona Corporation Commission has the Constitutional authority, the expertise, the staff, and the time to set complex statewide energy policies, which the part-time legislature is not equipped to handle.

There are several reasons why the Corporation Commission has been the only state authority to ever exercise this power and should continue to do so.

Commissioners have the experience and expertise to make thoughtful decisions on these issues in a way we in the Legislature simply could never match – because of our part-time nature and the breadth of issues before us. The Arizona Corporation Commission has a year-round staff of energy experts while the Legislature has part-time legislators and a staff that’s not designed to guide us on such questions.

Further, the commission collects evidence and holds evidentiary hearings in front of administrative law judges who gather facts and detailed evidence. The Legislature is not designed to engage in such intense fact finding on these important questions.

In fact, in its latest attempt to rewrite the laws guiding our current energy mix, the Corporation Commission has engaged in a series of hearings and workshops over several years where they have solicited reports and expert opinions from all sources. The Legislature simply does not work in such a way to replicate this type of detailed examination.

Sen. Boyer concluded that short-sighted energy policy could have lasting consequences.

Here’s why all of this matters.

Arizona residents who have lived here for even a few months know energy costs are a substantial part of any family’s budget – especially in the hot summer months of Phoenix or the cold winters of northern Arizona when monthly electric bills can soar as high as $400 or more. Getting the proper balance of energy grid reliability and cost is critical.

We continue to be one of the fastest-growing states in the nation and our energy sector has played a significant role in this ongoing economic recovery.

Arizona has already attracted major investments by large manufacturers, data centers and other new industries. All of this represents higher paying jobs and millions of new tax dollars for neighborhood schools and communities. None of this would be possible without stable, sound energy policies.

Further, our energy-friendly policies, access to natural resources and reliable grid all allow Arizona to not only meet existing demand but to generate surplus electricity. We sell more than 25% of the electricity generated here to consumers outside of Arizona.

This stability has helped us avoid the blackouts seen in California and Texas, giving Arizona a significant advantage in attracting investment from across the country. To upend decades of energy policy with a new regulator and new rules necessitates thoughtfulness – not diving in headfirst without knowing where we’re going.

The effects of short-sighted policy can have devastating, unintended consequences for the Arizonans who can afford it least. They simply want to know the lights will turn on and that they can afford it each month.

If the Arizona Legislature is going to take over energy policy, we should at the very least know what we’re getting ourselves into.

ChargePoint is Leading the Way on EV Charging Infrastructure

The electric vehicle market has skyrocketed in recent years, from just a few thousand vehicles in 2010 to more than 315,000 sold in 2020. According to Kelly Blue Book, electric vehicle sales in the second quarter of 2021 were up 255% year over year, and demand for electric vehicles is outpacing supply. In Arizona alone, there are nearly 29,000 registered electric vehicles as of June 2021 with roughly four EVs per 1,000 people, making it sixth nationwide for electric vehicle ownership. According to a recent report by CNBC, U.S. EV sales are forecast to exceed 1 million vehicles in 2025.

Even with Arizona’s sizable showing on EV adoption, the biggest challenge to greater adoption in Arizona is infrastructure, specifically the lack of readily available charging stations for EVs, and in particular in rural parts of the state. Currently, there are only 385 public fast-charging plugs and 1,448 non-fast-charging plugs in Arizona. Continued EV adoption is driving the need for charging, and if the installation of charging infrastructure does not accelerate, we could see EV adoption start to slow.

That’s where ChargePoint comes in. ChargePoint has designed an EV charging system with a fully integrated portfolio of hardware, cloud services and support for individuals, businesses, and entire fleets. The company, founded in 2007 and one of the oldest and largest EV charging networks, has more than 115,000 charging ports globally that are capable of charging every EV model on the road. It aims to increase that number to 2.5 million by 2025.

EV Charging Solutions for Individuals, Business and Fleets

For residential customers, ChargePoint’s Home Flex is a 240-volt Level 2 Energy Star certified home charger that delivers up to 50 amps of power. While most drivers will use 32 or 40 amps, using 48 or 50 delivers the fastest charge (hardwired installation and possible electrical upgrades required) and can add up to 37 miles of range per hour. An integrated ChargePoint app tracks charging, allows drivers to find charging stations away from home, schedule charging when energy is cheapest, and connect to smart home systems. ChargePoint even offers residential charging solutions suitable for apartments and condos, as well as a range of EV charging solutions for a range of commercial customers across industries, including hospitality, retail, healthcare, and entertainment and sports venues.

For customers contemplating fleet transition, ChargePoint provides a global fleet solution portfolio, including consultation and design/build services that can help guide site layout, construction and operational planning for scheduling, electricity use and charging optimization. For these customers, ChargePoint offers AC and DC fast charging solutions that enable customers to balance charging costs with operational readiness, from light- to heavy-duty vehicles and accounting for depot, on-route and at-home charging options that all integrate into ChargePoint’s fleet management software.

Innovative Partnerships for Sustainable Charging

ChargePoint’s overall commitment to sustainability and EV charging access is driving additional partnerships and innovation. For example, drivers now have expanded access to tens-of-thousands of additional places to charge beyond ChargePoint’s own infrastructure through roaming agreements and integrations in North America and Europe. And recently, Chargepoint announced a partnership with Sunnova, one of the leading residential solar and storage providers in the United States, to offer Sunnova customers solar-integrated residential EV charging solutions. Recognizing the increase in annual energy demand created by home charging, this partnership will allow customers to bundle a solar system and EV charger in a single purchase, with ChargePoint software embedded in customers’ personal Sunnova portal. Discussing the new partnership, Shankar Achanta, Senior Director of Adaptive Homes at Sunnova, said, “This new EV charging bundle gives homeowners the ability to power their vehicles with the clean energy produced right from their rooftops.”

Even with its extensive network of EV charging across the United States, ChargePoint understands the growing market demand as well as range anxiety that is still inhibiting greater EV adoption. As such, ChargePoint is working with the National Association of Truck Stop Operators on opportunities to expand EV charging infrastructure at truck stops, which serve both long- and medium-haul trucking as well as passenger cars.

ChargePoint describes itself as “100% focused on EV charging,” takes pride in its technology and contribution to achieving greater sustainability, and is looking ahead to the future. According to the company, ChargePoint drivers have already avoided 120 million gallons of gasoline and greenhouse gas emissions equivalent to planting over 11.7 million trees. ChargePoint is a perfect example of how technology and innovation can drive solutions for climate challenges.

Energy Innovation Spotlight: Dakota Energy Systems

Over the last several decades, significant research and development in the energy sector has yielded cleaner and better ways to generate the energy we need to grow our economy while mitigating the environmental impacts of that energy generation. This R&D has led to innovations in solar and wind energy, hydroelectric power, battery storage and more, significantly increasing our portfolio of clean energy options. Even as our options have expanded, innovation continues, with greater potential for sources like hydrogen and renewable natural gas on the horizon, as well as new opportunities for energy harvesting.  

That is what Dakota Energy Systems has done with its hydro electric power system (HEPS), which harvests energy from a variety of sources including municipal and private water systems, water and wastewater treatment plants, oil and gas, and commercial, industrial and manufacturing industries. The HEPS designed by Dakota Energy is clean, carbon-free, and three times more efficient than solar and wind energy. And, while typical hydroelectric power systems operate using water, Dakota Energy’s HEPS can operate with any low viscosity fluid. 

Energy harvesting, as a concept, is simply the process of capturing residual energy as a byproduct of a commercial, industrial or manufacturing processes. Typically, this residual energy is released into the environment as heat. But capturing that energy and putting it to use can have a significant economic and environmental impact. 

Dakota Energy’s system consists of three primary components that are pre-fabricated and can be attached to an existing or new hydronic piping system: 1) high efficiency turbine; 2) high efficiency AC generator; and 3) a hydronic pumping system. The system operates under pressure, and is designed to harvest the energy generated within the hydronic piping system. In essence, the HEPS system captures energy within a hydronic piping system by reducing the pressure within municipal or private pipelines, capturing energy from fluid flow, and then converting it into clean, carbon-free electricity. It does this by spinning a highly efficient turbine coupled to a high efficiency multi-RPM generator, such that the power created by the generator is delivered directly to an electrical distribution panel or back to the grid. The system can operate in either a closed-loop or open-loop setting with a wide range of fluid flow and pressure differential. And the modular design of the system coupled with its simple “turn key” installation makes it appropriate for a variety of applications, including both municipal and private water companies, oil injection wells, and water/wastewater treatment plants. 

The idea of energy harvesting is not new, of course. There are other examples of systems that harvest energy from vibration, thermal or chemical energy generated by industrial processes, and radiofrequency energy in the environment. But Dakota Energy’s system represents a new innovation in its approach. Recognizing the potential for harvesting energy from the many existing building facilities and piping systems around the United States (and indeed, the world), many of which operate large capacity, large horsepower, inefficient pumps, Dakota Energy focused on creating a system with a simple design, construction and operation, with a relatively low implementation cost and yielding the maximum possible efficiency. The result is actual cost savings, with a typical payback on the capital investment in two to four years, as well as significant energy savings.

For example, in one custom-designed Dakota Energy Systems HEPS installation in an industrial facility, if the system operates 24/7/365 as intended, the facility will realize an energy cost savings of over $11,000 annually. Even more impressive, the facility will save over 70,000 KWH of energy that the local utility did not have to provide. 

Recently, Dakota Energy announced the successful installation of its system in a private water station in Southern Orange County, CA. According to Dakota Energy, this system will generate up to 157,680 kWh or 157 MW of electricity per year, and the electricity harvested will feed back to the San Diego Gas & Electric power grid to offset electrical costs. The system will also help extend life of the water infrastructure, and help the area’s climate action goals.  

It should not be surprising that world energy consumption is expected to increase 50 percent by 2050: As our economies and communities continue to grow, we will need more sources of energy to power them. Yet we also know that we cannot continue to rely exclusively on traditional forms of energy generation to power our future economies, as we are already seeing the detrimental environmental consequences of the old way of doing things. As we look to develop and deploy cleaner sources of energy, Dakota Energy’s hydroelectric energy harvesting system demonstrates how innovation in energy generation and energy efficiency will help us meet both our future energy needs and our environmental goals.

AZ Grid Access Charge Eliminated

On October 25th, TWW argued against Arizona's grid access charge expansion in the Arizona Corporation Commission's electric resource planning process for APS.

TWW engaged on the issue because a review of the record in the APS rate case lacked specific evidence to support the charge to rooftop solar customers that APS was seeking. TWW argued that the Commission owed it to Arizonans to ensure that customers only pay necessary fees and charges that are supported by the evidence.

The very nature of a ratemaking case gives a utility a process and opportunity to introduce evidence in support of the charges that it seeks. In this case, APS had the time and opportunity to introduce evidence into the record in support of a charge to rooftop solar customers-a charge that it has long suggested is justified.

The Western Way acknowledges that there may be an increased cost to serve solar customers. However, APS did not introduce any evidence indicating what the cost is. As such, the Commission has no way to determine the basis for the charge for which APS is seeking approval or whether such a charge is an accurate reflection of the costs of distribution generation, indeed, the Commission does not actually have any way to determine whether there is a cost to APS associated with distributed generation at all.

The Recommended Opinion and Order is clear that the Commission does not have sufficient information in the record to reach a conclusion about the costs that rooftop solar customers cause to the grid. In the absence of actual evidence of costs necessary to justify the charge, it is inappropriate for the Commission to require Arizonans with rooftop solar to continue to pay the Grid Access Charge every month.

On October 27th the ACC voted to eliminate the fee.

Solid Power is at the Forefront of All-Solid-State Batteries

Colorado based Solid Power is at the cutting edge of solid state battery technology for electric vehicles.  The company spun out of the University of Colorado Boulder with DARPA funding in 2011 and after ten years of R&D it is now on the verge of major commercialization of their solid state battery cells. 

Solid Power’s all-solid-state battery chemistry provide several advantages over lithium ion cells currently used in electric vehicles.  The technology will allow for lighter packs, increased range, longer life, more safety and a lower price point.   

Solid Power’s co-founder and CEO Doug Campbell recently noted in an interview how solid state battery packs could impact the electric vehicle industry saying, “In a solid-state battery we have replaced that volatile and flammable liquid and gel polymer electrolyte with a very stable, solid ion conducting material,” Campbell said. “Our cells may still fail, but they do so in a very benign. non-catastrophic manner... In other words, instead of a thermal runaway on your hands, you simply have a dead brick.” 

Campbell continued, ““We believe, and our partners believe, that the design of future EV battery packs incorporating solid-state batteries will be substantially simpler,” Campbell said. “So that would drive down the cost.”

In September, Solid Power announced they would be quadrupling their total manufacturing footprint which the company called “a key inflection point in the company’s mission to commercialize its all-solid-state battery technology for deployment in electric vehicles.”  The new facility will greatly expand Solid Power’s capacity to produce key materials for its all-solid-state battery cells, including the ability to produce up to 30 metric tons of sulfide-based solid electrolyte material annually, representing a 25 times throughput increase to current capacity.

Electrolyte production at the new facility is intended to directly feed the company’s forthcoming all-solid-state EV cell manufacturing line, which is expected to produce cells for automotive qualification testing and future battery pack design. Solid Power expects to produce and deliver its first 100 Ah cells for formal automotive qualification testing in 2022. Once fully qualified, Solid Power intends to work closely with automotive OEMs and top tier battery cell producers to manufacture 100 Ah all-solid-state battery cells widely for in-vehicle use.

Long term, Solid Power plans to sell the company’s proprietary sulfide-based solid electrolyte material to support full-scale all-solid-state cell production for its partners, including Ford and BMW. Solid Power also intends to sell the solid electrolyte material to other solid-state cell producers who may not be using the company’s unique all-solid-state cell designs. Solid Power is working to produce 40,000 metric tons of electrolyte material per year by 2028, which could support the annual production of 800,000 electric vehicles using the company’s all-solid-state battery cell designs.

Solid Power’s research and development activities and battery cell testing capabilities remain ongoing. Future product and material development, such as next-generation electrolytes and conversion reaction cathodes for Solid Power’s third all solid-state cell design, are anticipated.

Energy Innovation Spotlight: Watergen

When we think of energy-saving technology, we don’t always think of water. But water and energy systems are highly interdependent: water is used in energy production, and energy is required to extract, treat, and deliver water. And, like clean and affordable energy, the availability of clean, safe, and sustainable water supplies is a pressing global challenge.

According to the World Data Lab, more than 2.3 billion people around the world live in water scarce regions, meaning regions with physically scarce water resources or scarcity due to institutional or infrastructure failures leading to poor quality water, including the United States. As global needs for water and energy continue to rise given projected population and economic growth worldwide, it will be critical that we continue to look for ways to more efficiently produce and use our water and energy resources.

Atmospheric Water Generation

One such opportunity is atmospheric water generation (AWG), an innovative technology that produces drinking water from humidity in the air. The system created by Watergen, an Israel-based company founded in 2009, uses a unique energy efficient module that produces water at the point of consumption, thereby reducing the need for energy intensive production, treatment, and transport, costly infrastructure, and the volume of plastic waste.

Energy Efficient

In essence, Watergen’s patented technology uses condensation as a means of producing fresh water. The system works by quickly moving air through a unique, energy-efficient heat exchange module; by moving air through its system in a very short time, the process is highly energy efficient, extracting the maximum amount of water from the air using less energy. The system is scalable and customizable and can be used for a wide range of daily quantities, enabling Watergen to supply fresh, clean drinking water to an entire town or village, or it can be scaled down to supply enough drinking water for private homes or offices. The system can produce one liter of clean drinking water using as little as 0.3 KWH in a wide range of climatic conditions, in temperatures ranging from about 60 to 100 degrees and relative humidity of ≥25%RH.

Hard Rock, AZ

This technology is already being used in communities around the world, including in Latin America, Africa, Asia, Europe, and right here in the United States. Just this past July, for example, Watergen demonstrated its highly mobile water-generating solution in the isolated town of Hard Rock, Arizona, part of the Navajo Nation in the northeast part of the state. Like much of Arizona, the Navajo Nation has been experiencing drought and extreme weather events, and the Navajo Tribal Utility Authority is encouraging residents to conserve water. The system Watergen brought to Hard Rock produces water from the air without the need for plumbing or municipal infrastructure and uses minimal electricity. While this system may not solve all of the water challenges Arizona’s tribal communities are facing, the innovative technology is helping to bring clean, affordable drinking water in an energy-efficient way to this water-stressed region.

Microsoft

But, drought-stricken communities aren’t the only ones to put AWG to use. For example, Microsoft is employing Watergen at its new building in Herzliya, just north of Tel Aviv, which the company has touted as the greenest building in Israel. Microsoft will use the Watergen technology to provide sustainable, energy efficient drinking water to its 2,000 employees there.

While atmospheric water generation may not solve global water and energy challenges, it is one example of how technology and innovation can identify new sources of water and energy, and help us produce and use them in a more efficient way. From arid, water-stressed regions in the developing world to densely populated urban corridors to high-tech multinational corporations, we can expect to see many more technologies like this in the near future. 

Utah's Rural Renewables Generate $5.3 Billion in Economic Output

The Western Way released, “The Economic Benefits of Utah’s Rural Renewable Energy Industry.” The economic impact study was conducted by Development Research Partners and analyzed rural utility scale renewable energy projects constructed in 11 counties in Utah.

These projects account for 2,275 megawatts of nameplate capacity from solar, wind, and geothermal facilities over 10 megawatts. The report analyzed 31 projects built in Utah (5 under current development or construction slated for completion by 2023) which result in significant economic benefits to rural Utah including:

• $5.3 billion in total output from construction and investment activity in from 2007 to 2023. • 9,051 total jobs (Direct and Indirect employees) earning $442.8 million in wages.

• $4.1 billion from construction and investment with 4,368 full-time constructions jobs.

• $154.4 million in total annual economic output with 568 employees earning $32.1 million annually.

• $24.6 million in annual property taxes paid to local governments.

• $6.3 million in annual lease payments to ranchers, farmers, and other landowners.

“During my time as Governor, I was in strong support of an All-Of-The-Above approach to energy development,” said former Governor Gary Herbert. “This is the first time I have seen quantified the state-wide economic benefit of renewable energy projects of all types in Utah. It’s impressive when you consider the megawatt output from the 31 utility-scale projects that encompass solar, wind and geothermal. The Western Way has done an excellent job guiding and sponsoring this study and our rural counties especially are benefiting greatly from this economic driver that I suspect is just going to grow.”

Renewable energy in Utah has historically been dominated by hydroelectric power, but solar, wind, and geothermal have grown in significance over the past two decades. The state’s high altitude, cooler temperatures, available sunshine, and affordable land have made the state a prime location for renewable energy development facilities.

Nearly 1 gigawatt of utility-scale solar in Utah was built in 2015 and 2016, more capacity than hydroelectric, geothermal, and wind combined, creating a large spike in renewable energy production in recent years. Electricity generation from all solar facilities, both small-scale and utility-scale, accounted for about 58 percent of the state’s renewable generation and was 30 times greater than in 2015. At the end of 2020, Utah ranked 10th among the states in the amount of solar generating capacity, with 1,525 MW installed.

The release of the report drew support from elected officials and Utah leaders:

“We’ve known for some time that a dramatic change is happening with the transition to new energy but I don’t think anyone knew that it’s having a $5.3 billion economic impact in Utah. The fact that workers in construction and maintenance has risen to over 9,000 is impressive. This number is just going to grow and I’m pleased that rural Utah is benefiting so much from these projects.”

J Stuart Adams President Utah State Senate

“The transition to new energy is happening very rapidly but some have questioned whether or not the economic impact is significant. This new study highlights and proves that renewable energy development has brought significant investment to the state. $4.1 billion in construction and investment from 2007 projected to 2023 is pretty impressive! I think we’re just seeing the tip of the iceberg. When it comes to wind, solar, and geothermal, money and markets are flowing together in an impressive and significant way and the positive economic impact of these projects in Utah is going to continue at break-neck speed.”

Stephen G. Handy Representative Utah House of Representatives

“In Beaver County we have to use the assets we have for economic development and with plenty of sunshine and wide-open spaces we have become one of the most-desirable locations for utility-scale solar in Utah. Renewable energy facilities have brought significant development to Beaver County and we expect it to continue. We are excited about the positive economic impact these projects are having to create jobs and tax revenue.”

Mark Whitney Commissioner, Beaver County

“The new report sponsored by The Western Way highlights the economic impact of renewable energy development and projects throughout the state. I’m really pleased to see what’s happening in Iron County and quantified here in this report. We are also excited about some of the geothermal activity that’s taking place over in New Castle. This could be really exciting in terms of additional job creation and positive economic activity for Iron County.”

Paul Cozzens Commissioner, Iron County

“This new report provides a comprehensive assessment of the economic impacts renewable energy – solar, wind, and geothermal – are making in Utah, fostering a rural renaissance across the state in terms of investment and monetary impacts, local jobs, and tax revenues. This report should give state, county and city policymakers the assurance that local projects will benefit their neighbors and communities.”

Edwin R. Stafford Ph.D. Professor of Marketing Jon M. Huntsman School of Business Utah State University

TWW Congratulates Leaders During National Clean Energy Week

National Clean Energy Week, September 20th to 24th, highlighted the various policies, industries, and innovations that power our country with lower or zero carbon emissions. Industry participants represented a full spectrum of energy producers including natural gas, nuclear, carbon sequestration, wind, solar, biogas and more.

Policy makers across the Western U.S. highlighted the importance of clean energy. TWW congratulated western congressmen for supporting a resolution in Congress highlighting clean energy’s importance to the environment and its contributions to the economy.

TWW also congratulated Congressman John Curtis of Utah for being named a 2021 CRES Clean Energy Champion during the week due to his leadership in supporting all of the above energy and American innovation to drive economic growth and responsible stewardship of the environment.

Energy Innovation Spotlight: First Solar

As more and more states have worked to meet their energy needs from clean and renewable sources, the growth of the solar industry has skyrocketed. According to the U.S. Department of Energy, U.S. solar capacity has grown from just 0.34 GW in 2008 to nearly 100 GW today--enough to power the equivalent of 18 million average American homes. And the price of solar energy, which at its inception was prohibitively expensive for many applications, has fallen dramatically: since 2014, the average cost of solar PV panels has dropped nearly 70%, and solar electricity is now economically competitive with conventional energy sources in most states.

R&D Focus

Significant investment in research and development has driven the tremendous advances in solar technology, and the correlating drop in cost, that we have seen over the last several decades. Arizona-based First Solar has been part of that effort since the 1990s and is now the largest domestic solar manufacturer, with thousands of employees across the United States. The company is a leader in the solar industry, developing, engineering and operating some of the world’s largest grid-connected photovoltaic power plants. It offers corporate, utility scale, and distributed generation solutions as well as opportunities for developers to integrate First Solar technology into new developments.

First Solar prides itself on sustainability and a commitment to “responsible solar.” This overall commitment to sustainability means First Solar isn’t just producing solar panels, but it is producing solar panels with the least possible environmental impact, manufacturing them using less energy, water and semiconductor material and resulting in the best environmental profile in the industry. First Solar is also a long-standing leader in global photovoltaic recycling services for its modules. Since 2009, the company has reduced its energy, water, waste, and carbon intensity per watt produced through improvements in module efficiency, manufacturing throughput and capacity utilization, as well as by implementing resource conservation projects at its facilities. And, just last month, First Solar announced a commitment to achieve net-zero emissions by 2050.

U.S. Made Panels

First Solar is also unique in the solar industry in that it largely sources supplies and produces its panels here in the United States, without the use of polycrystalline silicon, a critical raw material used in most other solar panels and is primarily manufactured in China. Because of its dominance in polycrystalline silicon manufacturing, China has maintained a firm grip on the global solar industry despite environmental and human rights concerns among federal lawmakers. In contrast, First Solar’s domestically-produced panels are made using advanced thin film photovoltaic (PV) modules, which are a competitive, high-performance, lower-carbon alternative to conventional crystalline silicon PV panels. The importance of First Solar’s commitment to domestic manufacturing is critical as we think about energy security and decoupling U.S. dependency on China.

Helping Meet Private Sector Goals

In addition to its corporate sustainability goals, First Solar is also helping other major corporations meet their own emissions targets. For example, Microsoft is on track to meet its goal of 100 percent renewable energy supply by 2025 for all of its data centers, buildings and campuses with the help of First Solar technology. Microsoft’s new energy-efficient datacenter region in Arizona, called the Azure cloud data center region offering Microsoft cloud services starting this year, will be powered by First Solar’s Sun Streams 2 photovoltaic solar plant and provide the lowest carbon solar electricity available today using First Solar’s proprietary Series 6 module technology. The Series 6 module has a carbon footprint that is up to six times lower than conventional crystalline silicon panels.

Planning for Future Growth

According to the U.S. Department of Energy, PV panels on just 22,000 square miles of the nation’s total land area – about the size of Lake Michigan – could supply enough electricity to power the entire United States. Although we have seen significant growth in solar energy generation, solar accounted for just 2.3 percent of total U.S. electricity in 2020. In sunny Arizona, which is ranked fourth in the nation for solar-powered electricity generation, that percentage was slightly higher, with roughly 8 percent of Arizona’s electricity generation coming from solar. That means there is still tremendous growth potential for solar in the United States, and First Solar is already preparing for it. According to First Solar CEO Mark Widmer, the company will have the capacity to generate panels that produce 6 GW of power annually domestically by 2025. While this still represents a fraction of the growth potential, it demonstrates how First Solar is thinking about future potential of solar generation.

First Solar has played a critical role in the growth and development of solar technology in the United States. Through innovation and a demonstrated commitment to sustainability and responsible production and manufacturing processes, First Solar is demonstrating what it means to be an innovative company.

Energy Innovation Spotlight: KORE Power's Domestic Battery Storage Supply Chain

Domestic battery storage manufacturing will play a crucial role in ensuring future grid reliability and security. Until recently, battery storage options--necessary for capturing and deploying intermittent energy resources like wind and solar in the most advantageous way--have not been readily available due to both technology limitations as well as very high costs. But the world of battery storage has changed dramatically over the last decade, as technology and production have ramped up and prices have fallen. Batteries are now positioned to play a meaningful role in the transition to emissions free energy generation. There is a front-of-meter storage boom that is driving U.S. based investment and creating a new domestic market. The front-of-meter energy storage segment is expected to grow to more than 5 gigawatts and $4.3 billion annually by 2025.

However, the U.S. is overly reliant on imported battery cells and components from Asia and must take steps to ensure that a domestic supply chain is available as battery storage becomes essential to our domestic energy security.

Idaho based, KORE Power understands this need and is leading the charge to build out a domestic battery storage supply chain. KORE Power produces its battery cells in a highly automated and state-of-the-art manufacturing facility, and it prioritizes research and development so that it is constantly improving its technology and manufacturing process.

KORE Power’s recent announcement that it will build a one-million square foot lithium ion battery manufacturing facility in Maricopa County, Arizona--the “KOREplex” as it is being called--will be the first manufacturing facility of its kind in the United States. The facility will operate at net-zero carbon emissions through strategic partnerships and solar-plus- and storage co-generation, and will help KORE meet its goal of scaling up annual production from 2 GWh to 12 GWh in order to serve the rapidly growing battery market. The new facility will also create more than 3,000 new advanced manufacturing jobs in Arizona and strengthen U.S. energy security by creating a robust domestic battery cell supply.

A recent white paper from Wood MacKenzie, Building a Secure Domestic Supply Chain for Energy Storage, details the importance of a domestic battery storage manufacturing capability.

“Despite leading the world in grid-scale energy storage deployment, the U.S. has lagged in the race to become a global leader in energy storage manufacturing. While U.S. national laboratories maintain world-class R&D capabilities, the cells that form the core of these batteries are nearly all imported from manufacturers in China, South Korea and Japan. In some ways, it is a familiar story, similar to how the U.S. effectively ceded the job creation and economic benefits of solar manufacturing to the Asian countries that aggressively backed that industry more than a decade ago. As battery storage becomes more essential to modern electricity systems at every scale, dependence on imported cells constitute a real risk to U.S. energy security.”

Even the Department of Defense has recognized the vulnerability to the military due to an import reliant battery storage supply chain. A 2018 report on the U.S. industrial base noted:

“Most domestic lithium-ion cell packagers rely on foreign commercial lithium-ion cell suppliers from countries such as South Korea, China, and Taiwan. Cell availability for military battery packaging is a risk across the board for rechargeable batteries.”

KORE Power is playing an important role creating high-impact and functional solutions to modern-energy challenges, and it is demonstrating how accelerating domestic battery storage innovation and manufacturing supports the economy and is vital for our domestic energy security.

Energy Innovation Spotlight: Idaho Milk Products

When Idaho Milk Products had the opportunity to design and build a new dairy processing facility in Jerome, ID, they set out to create a plant that would operate as energy and resource efficient as possible.  Now the facility is estimated to save enough energy annually to power nearly 400 homes and has reduced wastewater effluent by 70%.  This week Idaho Power awarded Idaho Milk Products a $97,000 cash incentive for their efforts in reducing energy consumption. 

“We commend Idaho Milk Products on their impressive energy efficiency efforts and this well-deserved incentive,” commented Leo Sanchez, Key Accounts Energy Advisor with Idaho Power. “We look forward to our continued partnership as we help them reach their energy goals.”

Steps taken at the Idaho Milk plant to reduce energy demand and drive efficiency include: 

• PROCESSING PUMP VARIABLE FREQUENCY DRIVES (VFDs) The process has 24 pumps, which can be controlled with either a control/throttling valve or a VFD. This measure includes selecting VFDs on the pumps where either option is possible.

• TWO-STAGE VARIABLE SPEED COMPRESSORS Two-stage compressors produce more air for the same power, allowing the compressors to operate at a lower percentage of full load. This measure also includes a cycling dryer instead of a non-cycling dryer. 

• LIGHTING This measure upgrades the plant lighting from a system designed primarily around metal halide fixtures to a system designed primarily with fluorescent T8 fixtures. Also, lighting controls are specified to turn off the lights when possible using occupancy sensors.

• COOLING TOWER FANS AND CONTROL UPGRADES The refrigeration system provides chilled glycol to the plant. The system has four chiller packages and four corresponding cooling towers. This measure includes VFDs to control the cooling tower fans. Also, the control algorithms for sequencing the cooling towers and for determining the temperature control set point are modified. 

• BOILER FEED WATER PUMP VFDs The boiler feed water pumps are designed to provide the required pressure at the maximum flow rate. As the required flow decreases, the pump discharge pressure increases. By reducing the pump speed, the required flow can be provided without increasing the pressure above the minimum requirement.

Idaho Milk is continuously seeking new ways to save energy and investing in the reliability of their electrical system. This has reduced the impact from transient switching, surges, and frequency shifts. They also replaced fluorescent light bulbs rated at 40 watts per bulb with LED light bulbs rated at 16.5 watts per bulb. The annual energy savings totals over 1.3 million kWh. Idaho Milk also participates in the Idaho Power Flex Peak Program, which motivates participants to reduce their electric load during Idaho Power initiated demand response events, six times per year. This saves 1,200 kilowatts each time for an annual savings of 7,200 kilowatts.

Thanks to the energy savings and demand response measures, Idaho Milk estimates they save 4.2 million fewer kilowatt hours annually.   Such savings are a prime example of how prudent investments in efficiency can quickly payoff and not only improve financial performance but also benefit the environment.

EV Manufacturing Continues to Grow in AZ

There is rarely a week that has gone by this summer without a company announcing plans to heavily invest in Arizona’s growing EV sector. This week it was, Zero Electric Vehicles which made public their plans to build out a new 103,000 sqft EV manufacturing facility in Gilbert, AZ. The company plans to move in by December 1, 2021 and create 300 new jobs.

ZEV is an Arizona based company which provides turnkey solutions to electrify existing light and medium fleet vehicles.

ZEV's location is strategically positioned to capitalize on their partnership with Arizona State University (ASU) to build on their incredible talent pool while developing new relationships with Grand Canyon University (GCU) and Maricopa County Community Colleges. "ZEV values the incredible talent coming through these college programs, we have over four graduates with patent filings in less than 6 months of development – that is rapid innovation," said Jim Maury, ZEV President.

ZEV will be expanding their fleet vehicle conversion production to 40 vehicles per day by Spring of 2022. ZEV has allocated 10K square feet to accelerate battery module design, development, certification and assembly to support fleet and passenger vehicle applications. This will bring high tech jobs, with expertise in battery cell chemistries, packaging, thermal management, and control interfaces to maximize energy density, configurability and safety through the vehicle lifecycle.

"It's with great excitement that we Welcome ZEV to Gilbert in their new 103,000 SQ FT stand-alone location on Germann Road! ZEV plans to hire 300 local employees over the next 12 months. We are grateful that ZEV chose Gilbert and thrilled for them to add to Gilbert's thriving business community," said Mayor Brigette Peterson, Gilbert City.

TWW Thanks AZ Sen. Shope and Rep. Osborne for Leadership on Heritage Fund

The Western Way thanks Arizona State Representative Joanne Osborne (District 13) and State Senator Thomas “T.J.” Shope, JR (District 8) for their leadership during the 2021 legislative session to help restore funding to the Arizona Heritage Fund. Thanks to Rep. Osborne, Sen. Shope, their colleagues in the legislature, and Governor Doug Ducey, the fund was restored to received a total of $10 million in 2021.

The Heritage Fund has made a significant impact to not just wildlife conservation efforts in Arizona, but also to the state’s economy, public access, and outdoor recreation. In 1990, the Heritage Fund was created by voters when they passed a ballot initiative by a 2-1 ratio. However, funding was cut in 2010 to deal with impacts of the the Great Recession.

“After 11 years, our state’s executive and legislative branches finally came together to fund the State Parks Heritage Fund to maintain and upgrade the growing number of parks, trails and historic preservation projects that have languished or are newly proposed in every municipality, county and tribal area in our state. I’m excited to see what projects start coming out of the ground to enhance the communities in which they’re located.”

-Sen. T.J. Shope, R-Coolidge

“My family came to Arizona in the late 1800s. Our state’s history can be found in so many places and needs to be preserved for future generations. Arizona is a unique and special place from its glorious lands to incredible places. Let’s keep the West alive and our Arizona way. It was an honor to carry the bill to advocate for funding for the State Parks Heritage Fund.”

-Rep. Joanne Osborne, R-Goodyear

POINT/COUNTERPOINT: Who is responsible for Colorado’s bad air quality?

TWW’s Colorado State Director, Greg Brophy argues how poor federal management of forests and public lands caused the recent poor air quality problems impacting Colorado and the Western United States. The piece ran in The Colorado Springs Gazette’s Point/Counterpoint opinion section on August 22, 2021 and can be accessed here.

The Counterpoint section argues that the poor air quality was caused by the oil and gas industry and lack of policymakers and regulators actions to put the industry out of business. The fact is that Colorado has some of the most stringent regulations and laws in the country governing the oil and gas industry. Preventing the industry from operating in Colorado would not have had any impact on the air quality that the state experienced this summer which ranked among the worst in the world.

Who is responsible for Colorado’s bad air quality?

Point: Greg Brophy

In 2002, one of the largest forest fires in Colorado history ripped across our state and it was all within eyesight of the Denver metro area. My first year in the Colorado Legislature was 2003, and I’ll never forget the Colorado State Forest Service’s presentation to state leaders showing how the Hayman fire affected state versus federal lands. In areas managed by the state, where trees were thinned, the land was starting to recover. In the national forests, the overgrown timber caused the fires to burn so intensely that it left the land scorched and resembling a sterile moonscape that might never regain its former majestic state.

Fast forward 20 years, and the problem has grown worse. Over the past month, Colorado has been experiencing dangerous air quality levels caused by forest fires burning across the West. When driving from Wray into Denver, I can typically see the mountains as soon as I pass Akron. Last week, I could not see the mountains, not even from Denver.

We need to call a spade a spade on this problem. If you trust science and data, it will lead you to one conclusion: the size of forest fires, their growing devastation, and the secondary impacts to our air and water are primarily a result of over a century of federal forest mismanagement.

This is not a new issue or phenomenon. In 1910, a massive 3-million-acre fire burned across three states and the U.S. Forest Service, implemented a new policy to extinguish every fire as quickly as possible, by 10 a.m. if possible. This was a critical historical pivot — enacting an overly broad measure that essentially disrupted the natural and necessary process of wildfires.

This short-sighted policy change was made exponentially more dangerous when extreme environmental groups went to war with the logging industry. Environmentalists won this fight too, enacting logging bans rather than managed logging activities.

In the early 20th century, there was an average of 19 trees per acre in the Stanislaus National Forest in Northern California; today there are 260 trees per acre in the same forest. Colorado forests grow an estimated 1.5 billion board feet per year, but we allow less than 5% of that growth to be harvested.

Give credit where it is due — extreme environmental groups have been extraordinarily successful in implementing their preferred forest “plan.” In 2021, the trophies for their success can be viewed across the western United States — thousands of acres of forest lands that are a tinder box of dead, overgrown flammable material awaiting ignition.

This was a natural and inevitable result of federal forest policies crafted by extreme environmental groups: compounding buildup of combustible material that makes wildfires fires hotter, more dangerous, and more devastating. It leads to massive wildfires, severe air quality problems, and growing water quality problems as watersheds are increasing polluted by the burns.

For the majority of citizens willing to act on data rather innuendo here is an inescapable fact — properly managed forests will burn with reduced devastation and recover more quickly than the out of control, overgrown messes we have today.

The extreme air quality experienced along Colorado’s Front Range this past month is the latest result of extreme mismanagement of federal forests. The health and economic devastation caused by this mismanagement disproportionately affects western states. It is time that extreme special interest groups spread along the eastern seaboard be placed in timeout and empower proven forest management experts from western states to lead federal forest management back to a common-sense solution that protects our health, environment and economies.

Greg Brophy is a former state legislator from the Eastern Plains and the Colorado director of The Western Way (www.thewesternway.org), a conservative nonprofit that seeks pro-market solutions to environmental challenges.

TWW Submits Comments to AZ Corp Comm Regarding Energy Rules

On August 20, 2021, The Western Way submitted the following comments to the Arizona Corporation Commission encouraging passage of the Energy Rules Package in their current form.