The Commission’s Renewable Energy Standards allow utilities to use solar, wind, biomass, biogas, geothermal and other similar technologies to generate renewable energy to power Arizona’s future. The rules package outlines what technologies qualify and allow for new and emerging technologies to be added as they become feasible.
In addition to utility-owned projects such as Tucson Electric Power’s large solar installation in Springerville, Arizona, the Commissioners also required a growing percentage of the total resource portfolio to come from distributed generation – residential or non-utility owned installations. The distributed energy requirement starts at 5 percent of the total portfolio in 2007 and grows to 30 percent of the total renewable mix after 2011.
In many cases, distributed generation installations – such as a large solar installation on the roof of a shopping mall, or solar panels at someone’s home – qualify for utility rebates or state and federal tax breaks that offset some of the upfront costs.
The Renewable Energy Standards were formerly known at the Environmental Portfolio Standard that topped out at 1.1 percent in 2007. In February 2004, the Commissioners voted to review the rules and consider adopting a more aggressive standard.
The Commission convened a series of intensive workshops involving the Commissioners and staff, proponents of various technologies, environmental advocacy groups and the utilities. The Renewable Energy Standards rules package is the result of this collaborative process.
Before taking effect, the rules must go through a review by the Attorney General’s Office and a formal rulemaking process with the Arizona Secretary of State’s office. It could be late in the third quarter or early in the fourth quarter of 2006 before the regulations are binding.
