The Arizona Corporation Commission (ACC) voted to initiate the formal steps required to repeal Arizona’s Renewable Energy Standard and Tariff (REST). This marks another setback for the state’s progress in clean energy investments.
The REST rules were passed by a majority Republican Commission in 2006 and require utilities to source at least 15% of their electricity from renewable energy resources by 2025. This requirement has been key to Arizona’s advancement toward a clean and modernized grid. Today’s (5-0) vote to initiate the repeal of the REST rules puts the state’s continued progress at risk. Arizonans have the opportunity to submit comments to the commission before November 14.
“In 2006 the ACC had the foresight to recognize the value of promoting investments in Arizona’s most plentiful resource, sunshine, and set a target to achieve 15% renewable energy by 2025. The REST created a stable, pro-business environment for renewable energy that has directly benefited the people of Arizona,” said Vote Solar’s Interior West Regulatory Director, Kate Bowman. “Today, solar energy has become the cheapest source of power. Repealing the REST standard would deter continued investment in solar energy and negatively impact many ratepayers who are already struggling to manage rising utility bills.”
The REST has been crucial for increasing investment and job opportunities in the state. Since 2006, the REST has led to an estimated $2 billion in benefits for consumers of Arizona Public Service (APS) and Tuscon Electric Power (TEP) while also reducing climate pollution. Early investments in solar energy have paid off: Arizona now ranks 4th in the country for total solar capacity. Roughly 1 in 5 Arizonans uses rooftop solar to help lower their electricity bill, and the solar industry provides more than 9,700 jobs and invested $2.6 billion in the state last year alone. Unlike coal and methane gas plants, renewable energy technologies and investments like wind and solar do not require water for cooling, saving the state significant water. Less than a third of the fossil fuel plants report their water usage, but those that do use enough water to supply the needs of 28% of Arizona’s homes.
Arizona utilities expect energy usage to increase by as much as 70% over the next 15 years, and solar energy is currently the least expensive form of electricity. However, new restrictions on federal tax credits and persistent inflation make building renewable energy projects more difficult. A recent study forecasts that the federal tax credit phase-out will cause Arizona electricity prices to rise 15% to 20% by 2029. Any additional barriers to clean energy investment will only compound the impact on consumers.
“It is naive to think that repealing the REST will not have direct impacts on Arizona families. The ACC’s actions send the message that Arizona is closed for business when it comes to renewable energy,” said Vote Solar’s Regional Director for the Interior West, Itzel Rios-Vega. “We urge the commission not to surrender its responsibility to guide Arizona’s energy future. Now is the time to expand opportunities for families and businesses to access affordable solar solutions.”
News item from Vote Solar