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REFERENCE TITLE: corporation commission; electric generation resources |
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State of Arizona Senate Fifty-sixth Legislature First Regular Session 2023
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SB 1502 |
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Introduced by Senators Carroll: Kerr; Representative Griffin
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An Act
amending title 40, chapter 2, article 1, Arizona Revised Statutes, by adding section 40-207; relating to public service corporations.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 40, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 40-207, to read:
40-207. Regulation of critical electric generation resources; renewable energy resources; definitions
A. It is the public policy of this state that public service corporations should pursue the use of clean energy resources and the reduction of carbon emissions resulting from the generation of energy for retail electric sales, provided the mix of critical electric generation resources used by each public service corporation to meet its customers' needs is the lowest cost method of providing safe and reliable electricity services while taking into consideration the system-wide costs associated with meeting customer demand for services at all times of each day and throughout all seasons of the year.
B. The clean energy resources and carbon emissions reduction policies of this state require public service corporations to derive at least the following percentage of retail kilowatt sales from renewable energy resources by the following dates:
1. thirteen percent by December 31, 2023.
2. Fourteen percent by December 31, 2024.
3. fifteen percent by December 31, 2025 and for each year thereafter.
C. This section does not prohibit the commission from exercising its ratemaking or statutory authority over public service corporations.
D. The commission may adopt rules to ensure public service corporations comply with this section. The commission may not adopt or enforce any policy, decision or rule that increases or decreases the percentages prescribed in subsection B of this section or otherwise conflicts with the requirements prescribed in subsection B of this section or that directly or indirectly regulates a public service corporation's carbon emissions.
E. For the purposes of this section:
1. "Carbon emissions" means carbon emissions resulting from the combustion of fossil fuels, such as coal, petroleum, natural gas, oil, shale or bitumen.
2. "Clean energy resources" includes solar, wind, biomass, geothermal, nuclear and hydroelectric technologies that generate electricity.
3. "critical electric generation resources" includes any generation resource used or acquired by a public service corporation, including solar, wind, biomass, geothermal, nuclear, hydroelectric, fuel-cell technology, natural gas or coal or any other petroleum fuel source.
4. "Lowest cost method" means the method of meeting customers' energy needs that results in the lowest amount of expenses and rate base that the commission's established ratemaking practices allow a public service corporation to recover from ratepayers.
5. "Renewable energy resources" includes solar, wind, biomass, geothermal and hydroelectric technologies that generate electricity.
Sec. 2. Legislative findings
The legislature finds that:
1. Energy development, production and generation is an issue of statewide concern necessary to ensure the public's health and safety.
2. Policies that restrict or ban critical fuel and energy resources beyond the requirements prescribed in section 40-207, subsection B, Arizona Revised Statutes, as added by this act, will result in higher electricity prices, harm economic growth, reduce grid reliability and damage Arizona's energy independence.
3. Any policy, decision or rule that regulates critical electric generation resources should prioritize affordability and reliability.
4. The regulation of carbon emissions from the generation of energy for retail electric sales is an issue of statewide concern necessary to protect the public health, safety and welfare.