Reminder- Arizona tax credit information is available here: Arizona Tax Incentives

Federal investment tax information, including end of year rules, is available here: Federal Tax Incentives

The Arizona Legislature is in session and there are some energy bills to oppose (HB2248, SB1175, HB2737)

Status of Bills:
HB 2248: Corporation Commission; Electric Generation Resources
This bill has made its way through the House of Representatives and was Third Read on 3/3/20201. It received 31 ayes, 28 nays and one not voting. The vote was split along party lines.

SB 1175: Corporation Commission; Electric Generation Resources
This bill is the mirrored version of HB 2248 from the House; however, this version has not made it as far in the process and has been retained on the Senate Committee of the Whole calendar twice now.

This week Arizona Public Service joined in publicly opposing both HB 2248 and SB 1175.

HB 2737: Corporation Commission Actions; Investigation
This bill would allow any legislator to challenge any non-ratemaking decision of the Arizona Corporation Commission by filing a complaint with the Arizona Attorney General’s office. If found to exceed the commission’s authority, the commission will lose 10% of its budget for the year. This bill passed through the House Committee of the Whole process on 3/4/2021, however, did receive opposition from both Democratic and Republican members. The bill has not moved forward to House Third Read.

Please continue to tell your state legislator to vote no on HB 2248, SB 1175 and HB 2737. It is imperative that we convey the negative impact passing these bills will have on the regulatory certainty that companies rely on to locate, relocate and grow. We need to protect our state’s economy, our health and our future. Email your representatives.

Here is a link to find your representatives

The Arizona Corporation Commission (ACC) has posted STAFF'S THIRD REVISED PROPOSED DRAFT RULES (DOCKET no. RE-00000A-18-0284) That lay out a clearer framework for Electric Utilities to report their compliance with the proposed standards for the Renewable Energy Standard, Clean Peak Standard, Distributed Renewable Storage Requirement, and Electric Vehicle Infrastructure.

See the ACC Staff Report: docket.images.azcc.gov/E000004960.pdf

See also Materials Presented by the Joint Stakeholders at the Commission's March 2020 Energy Rules Workshop

ACC Staff has made substantial changes to the draft rules that were filed on July 2, 2019 based on feedback received at each workshop held in this matter, comments to the docket, and a review of relevant energy policies across the United States.

The Nature Conservancy has submitted their report "Arizona Thrives - A Path to a Healthy and Prosperous Future" to the ACC. Interesting.

APS has submitted their report,  The Solar Center has slightly reformatted this report by rotating the pages for easier viewing.  APS has provided two presentations to address the ACC questions. Worth a read.

Update July 30, 2020: 

When the Arizona utility regulators met to decide these issues they deadlocked over whether they should increase the state's requirements for renewable energy. It proved not possible to obtain the agreement of at least three commissioners, the meeting was adjourned.

See the Arizona Republic article on this:  Arizona utility regulators hit roadblock on clean-energy rules, abruptly end meeting.

The Arizona Corporation Commission (ACC) has released the Notice of Final Rulemaking Interconnection of Distributed Generation FacilitiesInterconnection of Distributed Generation Facilities document.

With this rulemaking, the Commission adds a new Article 26, entitled " Interconnection. of Distributed Generation Facilities" to 14 A.A.C. 2, the Chapter containing the Commission's rules for fixed utilities, with the new Article 26 including 28 new rules. The rules for Interconnection of Distributed Generation Facilities ("DGI Rules") establish mandatory technical standards, processes, and timelines for utilities to use for· interconnection and parallel operation of different types of distributed generation ("DG") facilities; customer and utility rights and responsibilities; provisions for disconnection of DG facilities from the distribution system; specific safety requirements; more flexible standards for electric cooperatives; a reporting requirement; and a requirement for each utility to create, submit for initial approval and submit for approval periodically and when revised, and implement and comply with a Commission-approved Interconnection Manual.

The first dozen pages are basically legal stuff.  The document defines how an utility must review, then accept/reject/etc. an application to connect distributed generation to the utility.  It defines both customer rights and utility procedures.  There are a lot of utility, installer and customer comments along with the ACC staff recomendations. 

This is a good report that provides a conceptual framework for the Statewide Transportation Electrification Plan for Arizona, including planned or proposed near-term utility actions to support the growth of Electric Vehicles (EVs) in the state.

The report is part of a filing on the Arizona Corporation Commission website: Arizona Statewide Transportation Electrification Plan

The City of Phoenix is now (January 2020) requiring a special permit from the Fire Department for most solar systems and batteries.  The fees and required plans varies with size and content.  See this link for an application and details:  https://www.phoenix.gov/firesite/Documents/Solar Photovoltaic OTC Bundle Rev 01-2020.pdf

This is in addition to a building permit from the Planning & Development Department and must be separately obtained at a different address (150 South 12th Street) or on-line via the above link. Also noted is that residential PV permits are no longer over the counter and as of March 2020 are estimated to take 29 working days to process.  Separate inspections are required.

The code requirements are contained in Phoenix-Chapter 12 BESS R-3-1.pdf

Also note: All Phoenix solar building permits are now electronic submittal only. Contact the Electronic Plan Review (EPR) Triage Team at 602-534-5933 or epr.support@phoenix.gov. For more information on EPR, visit us at https://www.phoenix.gov/pdd/onlineservices/electronic-plan-review.

Related: PV Rapid Shutdown Signage- Phoenix

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Update July 18, 2020

APS has posted a Final report on the McMicken Battery Energy Storage System Event Technical Analysis and Recommendations.

See the full article:  https://azsolarcenter.org/update-utility-solar-battery-fire-in-arizona 

Arizona Public Service Co. has announced that it plans to produce all of its electricity from carbon-free sources by 2050 and will get 45% of its power from renewable sources like solar and wind by the end of this decade.

This is a good improvement from the point of view of sustainable energy.  There are still a lot of details to be worked out such as the role that distributed energy will take.  Will APS APS improve its policies in regard to residential and small commercial systems.

There are several good news articles and the APS press releases on this announcement:

APS:APS sets course for 100 percent clean energy future

Arizona Republic: APS will eliminate carbon emissions by 2050 and close coal plant ahead of schedule, CEO says

The Washington Post: Arizona’s biggest utility says it will get all of its electricity from carbon-free sources by 2050

Tucson Electric Power (TEP) plans to provide more than 70 percent of its power from wind and solar resources as part of a cleaner energy portfolio that will reduce carbon emissions 80 percent by 2035.

TEP has filed its integrated resource plan (IRP) with the Arizona Corporation Commission, outlining plans for 2.5GW of new solar and wind over the next 15 years and 1.4GW of energy storage capacity as it progressively shutters its coal power stations.

See the TEP Press Release for more information: https://www.tep.com/news/tep-plans-clean-energy-expansion-carbon-reduction/

TEP customers intending to install a new PV system now need to check that their system can be safely installed and connected to TEP’s grid.

TEP now has service areas that are saturated with PV systems where new PV systems are subject to additional review and requirements under Arizona’s Distributed Generation Interconnection Rules. TEP has prepared DG Saturation Maps showing these areas.

This further described at https://www.tep.com/get-started-with-solar/

This requirement stems from the recent Distributed Generation Interconnection Rules issued by the Arizona Corporation Commission.

Further information is available at:Interconnection of Distributed Generation Facilities

Update: See the related article on tucson.com: New state rules limit rooftop solar systems in some Tucson neighborhoods

Battery Storage Costs Drop Dramatically, Making Way to a New Era. A recent Rocky Mountain Institute (RMI) report continues to confirm that clean electrification through batteries is advancing at impressive rates. Very interesting report: Breakthrough Batteries- Powering the Era of Clean Electrification