CORRECTED Feb 09 2010
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REFERENCE TITLE: electric utilities; renewable energy standards |
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State of Arizona House of Representatives Forty-ninth Legislature Second Regular Session 2010
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HB 2701 |
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Introduced by Representatives Lesko, Antenori, Barnes, Driggs, Kavanagh, Murphy, Senators Aguirre, Burns, Gorman, Leff, Pearce R: Representatives Adams, Ash, Barto, Boone, Brown, Burges, Court, Crandall, Crump, Goodale, Gowan, Hendrix, Jones, Konopnicki, McComish, McGuire, McLain, Montenegro, Nichols, Pratt, Quelland, Reagan, Stevens, Tobin, Weiers J, Weiers JP, Williams, Yarbrough, Senators Allen C, Allen S, Alvarez, Gould, Gray L, Harper, Huppenthal, Melvin, Nelson, Paton, Pierce S, Tibshraeny, Verschoor
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AN ACT
amending title 30, Arizona Revised Statutes, by adding chapter 7; relating to electric utility renewable energy standards.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 30, Arizona Revised Statutes, is amended by adding chapter 7, to read:
CHAPTER 7
ELECTRIC UTILITY RENEWABLE ENERGY STANDARDS
ARTICLE 1. GENERAL PROVISIONS
30-901. Findings and policy
A. The legislature finds that:
1. The development and distribution of renewable energy resources is important to achieving energy independence, ensuring a diversity of energy supplies and protecting the environment.
2. Renewable energy policy must be dynamic in order to respond to changes in technology and market forces.
B. It is the policy of this state to use renewable energy resources in conjunction with the need to provide reliable and low-cost energy resources to residents and businesses.
C. Pursuant to its police power, the legislature has exclusive authority to determine renewable energy policy for this state. END_STATUTE
30-902. Definitions
In this chapter, unless the context otherwise requires:
1. "Public power entity" means any municipal corporation, including a city, town or other political subdivision, that is organized pursuant to law and that generates, transmits, distributes or otherwise provides electricity. Public power entity does not include a public service corporation.
2. "Renewable energy" means renewable and noncarbon producing energy resources, including solar, wind, geothermal, biomass, hydroelectric, agricultural waste, landfill gas and nuclear sources.
3. "Renewable energy policy" includes targets, mandates, tax credits, incentives and other direct means to determine or encourage the production, distribution and use of renewable energy sources. Renewable energy policy does not include setting utility rates.
30-903. Renewable energy standards
A. The following constitute the renewable energy standards for public and private power entities in this state:
1. Public power entities and public service corporations serving an annual retail load of at least seven hundred fifty thousand energy hours as of January 1, 2011 must adhere to a goal that by 2025 at least fifteen per cent of electricity used by their retail customers will be derived from renewable energy sources.
2. If a public power entity or public service corporation does not serve an annual retail load of at least seven hundred fifty thousand energy hours as of January 1, 2011 but thereafter reaches that threshold, that public power entity or public service corporation must adhere to a goal that within fifteen years after reaching that threshold at least fifteen per cent of electricity used by their retail customers will be derived from renewable energy sources.
3. In addition to developing renewable energy portfolios, appropriate tools that public power entities and public service corporations may use to reach the renewable energy goals established by this section include customer-based incentives such as:
(a) Energy efficiency rebates.
(b) Net metering.
(c) Demand response programs and usage information.
(d) Support, assistance and net metering for customer facilities generating electricity and selling all or part of the electricity to the public power entity or public service corporation.
B. Public power entities and public service corporations are exempt from the requirements of this section to the extent that they cannot be achieved consistent with the entity's or corporation's requirement to provide services at just and reasonable costs to customers pursuant to section 40‑361, subsection A.
C. The Arizona corporation commission shall enforce the standards prescribed by this section with respect to public service corporations, and the governing body of each public power entity shall enforce the standards prescribed by this section with respect to the public power entity it governs, by appropriate rules and procedures that do not enlarge the obligations of this section and that do not increase the cost of providing energy to customers beyond necessary administrative compliance expenses.
D. This section does not supersede any existing authority of any political subdivision to adopt or enforce a local renewable energy policy that does not conflict with the state renewable energy policy set forth by this chapter.