Lawmakers aim to block Arizona’s clean-energy rules

Republican lawmakers are trying to block Arizona’s clean-energy rules by prohibiting energy regulators from forcing electric companies to shift to 100% carbon-free energy.

If the GOP proposals pass the Legislature and are signed into law they would not only block the requirement that utility regulators recently passed for electric companies to produce 100% of their energy with no carbon emissions by 2050, but also a host of other requirements such as how they plan for and build new power plants and other details included in the clean-energy rules.

The bills would leave that authority to the Legislature.

The measures, one of which passed the House Natural Resources, Energy and Water Committee on Tuesday, prohibit any new rules passed since June 2020 from taking effect.

In November, with three Republicans in support, the Arizona Corporation Commission passed rules that update the Renewable Energy Standard and Tariff that was implemented by an allRepublican commission in 2006.

Under the newest update to the rules, which is expected to get a final approval from the commission this year, electric companies will have to phase out coaland natural-gas-burning power plants, and they will need to start soon. The plan has interim requirements that utilities cut carbon emissions in half by 2032, and 75% by 2040.

After a last-minute amendment, the new rules do not require specific energy types such as renewables, but only require the energy be carbon free, which allows utilities to meet the demand with nuclear power and energy efficiency.

The bills at the Legislature would block the new rules passed in November from taking effect, but would not alter previous requirements, which are in place today. Those rules from 2006 require utilities to get 15% of their power from renewables such as solar and wind by 2025, and rules passed in 2010 require them to use efficiency measures to meet 22% of their energy demand by this year.

Some lawmakers want to take such rule-making authority away from the Corporation Commission, which sets rates and policies for electric, water and gas utilities, among other duties.

Rep. Gail Griffin, R-Hereford, is sponsoring House Bill 2248, which passed a committee vote 6-4 Tuesday, with Republicans supporting the bill and Democrats opposed.

Sen. Sine Kerr, R-Buckeye, is sponsoring Senate Bill 1175, which similarly passed a committee vote Wednesday along the same party lines.

Both bills will need votes from the full Legislature, but because they are identical, they can move through simultaneously.

Energy rules took years to craft

The Corporation Commission passed the recent increase in clean-energy regulations after four years of workshops, hearings, testimony and revisions, leading to the bipartisan vote to move forward in November.

The new rules had wide support from the business community, and the efforts to block the rules face wide opposition.

Opponents to the bill include Lucid Motors, which just built an electric-vehicle factory in Arizona, Tesla Motors, which considered building a factory in Arizona, the Arizona Technology Council, which has 750 members in the state, and a host of environmental groups.

Groups supporting the bills to block clean energy rules include Americans for Prosperity, the Goldwater Institute — which unsuccessfully sued to repeal the 2006 renewable-energy rules passed by the Corporation Commission — and the Home Builders Association of Central Arizona.

Commissioners split over proposals

The five Corporation Commission members debated the legislative proposals earlier this month and voted 3-2 vote along party lines with Republicans in the majority to remain neutral and not weigh in.

Republicans Justin Olson and Jim O’Connor said they didn’t support the new clean-energy rules because they do not include any guarantees against rate increases for customers.

“I’m really, really, truly interested in protecting ratepayers throughout our state on every and all occasions,” O’Connor said when the commission discussed the matter Jan. 19.

Republican Chairwoman

Lea

Márquez

Peterson said she didn’t feel the need to weigh in with the Legislature.

Opposing the “neutral” stance were Commissioner Sandra Kennedy, who said she felt the Legislature was “overreaching” with the bills. Fellow Democrat Anna Tovar called it a “power grab.”

Kennedy and Tovar both spoke at Tuesday’s hearing in opposition to the House bill; Olson spoke in favor.

“I want to build a relationship with the state Legislature and continue our work, business as usual, on our energy rules, simultaneously,” Márquez Peterson said at the commission meeting. “I don’t think we need to weigh in with either strong opposition or strong support.”

Kennedy said letting the lawmakers take away their authority over energy rules was improper.

“Maybe the majority should give up their seats and just walk away from the commission because they are not interested in being here,” Kennedy said at the commission meeting.

Constitutionality of bills questioned

Lawmakers spent considerable time Tuesday debating whether the bills are even legal under the state Constitution.

The commissioners also debated their constitutionality, including during a lengthy executive session.

Commission lawyer Robin Mitchell explained during the open portion of their meeting that a recent Arizona Supreme Court decision involving Johnson Utilities resulted in an 8-1 opinion that the commission has “permissive” authority to set rules and regulations for utilities, but that in matters involving public safety the Legislature’s authority was supreme.

Mitchell said there would be a conflict between the Legislature and Commission if the bills passed. Kennedy asked her if the bills were constitutional.

“I would say

Mitchell said.

Márquez Peterson said that there was no conflict until and if the bills passed commissioners could “address it at that time.”

it

is

questionable,”