Published March 2016
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- For our analysis of California’s 2011 Renewable Portfolio Standard (RPS), please see California’s Renewable Portfolio Standard: How will Arizona and the Southwest be affected?
- Under SB 350, named the “Clean Energy and Pollution Reduction Act of 2015,” California recently increased its RPS to 50 percent renewables by 2030 (up from 33 percent by 2020).
- California’s goal is more than double what will be needed to comply with the Clean Power Plan (21 percent by 2030).
- The RPS includes interim targets of 40 percent renewables by the end of 2024, 45 percent by the end of 2027, and 50 percent by the end of the 2030.
- SB 350 also requires demand-side energy efficiency savings for retail consumers of electricity and natural gas to double by 2030. The benchmark for this goal has yet to be determined.
Read full brief at this link: https://energypolicy.asu.edu/wp-content/uploads/2016/03/California-RPS-standards-brief.pdf
In the wake of the Clean Power Plan, EPIC and the Sonoran Institute issued this Build-out Study on utility-scale solar developments in the pipeline at the end of 2015. These are projects
1. that are fully permitted
2. with planning or permits likely to be concluded by the end of 2017, or
3. are located in areas already identified as suitable for large-scale solar installations).
In addition to this survey, the report identifies existing policies that supported these installments and recommends future policies to continue the clean energy trajectory.
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- The Arizona Energy Efficiency Resource Standard (EERS) requires regulated electric utilities with an annual revenue of more than $5 million to achieve a cumulative energy savings of 22 percent by 2020, based on historical customer demand. The incremental savings began in 2011 at 1.25% of the previous year’s retail sales. Regulated gas utilities have a similar requirement of 6 percent cumulative energy savings by 2020, also based on historical consumer demand.
- On November 4th, 2014, the Arizona Corporation Commission (ACC) staff filed a draft amendment to the state EERS that would have the effect of rescinding the mandatory Standard. Instead, gas and electric utilities would be allowed to determine their own custom energy efficiency goals each year, on the basis of cost-effectiveness, during their bi-annual integrated resource planning (IRP) process. The IRP is non-binding.
- The public has until Tuesday, November 18th, 2014 to submit comments to the ACC regarding the proposal. (Comment submission information can be found at the end of this document).
- Currently, the Societal Cost Test is used to verify all energy efficiency programs under the EERS. The amended goal would allow the Commission to use three other tests to determine cost effectiveness:
o The Participant Cost Test
o The Ratepayer Impact Cost Test
o The Utility Cost Test
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- Property Assessed Clean Energy (PACE) offers a path for building owners to fund energy efficiency upgrades and renewable energy projects.
- Under the PACE framework, a local government provides the up-front capital for a building owner to install an energy efficiency project and/or a renewable energy system on their building. The building owner repays the capital over the course of 20 years through a property assessment tax.
- PACE is being successfully used in 12 states and Washington, D.C. for commercial properties. Many states also allow PACE financing for residential properties, but most residential financing programs have been shelved for now while the Federal Housing Finance Agency (FHFA) issues rules related to lien seniority for mortgaged homes.
- Developing a PACE program in Arizona would require passage of PACE-enabling legislation. PACE-enabling bills have been introduced in past legislative session, but have not been signed into law.
- During the current 2014 session, State Reps. Orr (R) and Sherwood (D) are sponsoring PACE-enabling bill HB 2206.