Today’s decision by the Arizona Corporation Commission to establish a carbon-free electricity standard is an “essential aspect of efforts to ensure the long-term health of Arizona’s economy and citizens as the state confronts the challenges brought on by the COVID-19 pandemic,” said Alli Gold Roberts, director of state policy at Ceres.
In a bipartisan vote, the Commission approved a carbon-free standard that requires Arizona utilities to reduce carbon emissions by 100% by 2050, with interim targets of 50% by 2032, and 75% by 2040. This ruling follows a decision earlier in October to extend and strengthen the state’s energy efficiency resource standard requiring utilities to implement enough energy savings measures by 2030 equivalent to 35% of their 2020 peak demand.
The vote is an important step in the process. The new carbon-free electricity standard still requires a final vote from commissioners before it takes effect. That vote is expected later this year and will launch a formal hearing process.
The Commission’s vote starts a formal rulemaking process to adopt the policies that regulators approved today. That process will take several months to complete and will culminate in a final vote by utility regulators next year.
“Ceres applauds the Commission for charting a path that enables flexibility for utilities to achieve a net-zero emissions future in Arizona. These standards will help Arizona expand the state’s investments in renewable energy and energy efficiency, which is vital to supporting the local economy and bringing new jobs to the state,” added Roberts.
A recent Ceres report found that from 2008 to 2018, Arizona’s renewable energy policies have delivered significant benefits to Arizona utilities, companies and residents—including $2 billion in benefits to Arizona ratepayers and jobs for nearly 14,000 Arizonans who worked in the renewable energy field in 2019. Energy efficiency efforts have also created billions in net economic benefits, saving Arizonan families and businesses money on their energy bills.
A dozen major companies and business associations in Arizona—including Ball Corporation, ON Semiconductor, Johns Manville, Schneider Electric and others—have repeatedly called on the Commission to adopt stronger clean energy standards as a way to build a robust and resilient economy.
“Clean energy has been a boon for Arizona, and major companies have taken note and jumped at the opportunity to invest in the state as a way to meet their climate goals,” said Roberts. “These bold new standards will help to send a message that Arizona is open for business when it comes to corporate clean energy investments.”