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Arizona

Clean and Efficient Energy Policies and Commitments

State Policy

Utility Spending: Energy Efficiency $31.9 million in 2007 by all utilities in the state (EIA).
Legislation Affecting Utilities

Under the Arizona Administrative Code, regulated electric and gas utilities with annual operating revenue over $1 million must file energy conservation plans which must, at least, include customer education and assistance programs to help the public reduce energy consumption and bolster participation in energy conservation programs sponsored by governmental agencies.

On February 27, 2006, the Arizona Corporation Commission (ACC) introduced new renewable energy standards requiring all regulated electric utilities to generate 15% of their energy from renewable resources by 2025. The new rules also require a growing percentage of the total resource portfolio to come from distributed generation. Sources of energy that count toward the standard include electricity produced from qualifying biogas, hydropower, fuel cells that use only renewable fuels, geothermal, hybrid wind and solar, landfill gas, solar, and wind.

In December 2009, the ACC set an electric energy efficiency standard ordering regulated utilities with annual operating revenue of $5 million or greater achieve 2% annual savings beginning in 2014. By 2020, the state should reach 20% cumulative savings, plus up to a 2% credit for peak demand reductions from demand response programs, for a total standard of 22%. Electric distribution cooperatives are required to meet 75% of the standard in any year. Utilities can count energy supply from combined heat and power systems that do not qualify under the state's Renewable Energy Standards towards the standard, as well as 1/3 of the measured savings from new building codes.

Relevance to Public Power: Public power is not regulated by the ACC. Therefore, it is not bound by any of the requirements described above.

Building Codes Current Status
Standards for Appliances HB 2332 of 2009 established new standards, effective January 1, 2012 for additional products not covered by federal standard. The standards now apply to the following types of new products sold, offered for sale or installed in Arizona:
  • Portable electric spas (2012)
  • Residential pool pumps (2012)
  • Residential pool pump motors (2012)

(Dates listed in parenthesis signify the effective date.)
Climate Change Action

On September 8, 2006, Executive Order 2006-13 was issued which established a statewide goal to reduce Arizona’s GHG emissions to 2000 levels by 2020, and 50 percent below 2000 levels by 2040.
Regional Coordination Since February 2007, the state has been a member of the Western Climate Initiative.

Commitments by Public Power Communities

U.S. Conference of Mayor's Climate Protection Agreement Buckeye, Mesa

Learn more about the Climate Protection Agreement!
EPA's Green Communities

Learn more about Green Power Communities!

Public Power Utility Initiatives

APPA Energy Efficiency Partners
  • Utah Associated Municipal Power Systems
Energy Efficiency Program Sponsors
ENERGY STAR Product Partners
  • Salt River Project

Renewable Energy/Energy Efficiency Resource Standards

  • Salt River Project (SRS): SRS set voluntary goals in 2004 that include renewable energy and energy efficiency measures. Renewables that count towards meeting the goal include wind, geothermal, large hydro, low impact hydro, landfill gas and solar. In 2006, a plan for future renewable energy and energy efficiency measures was approved by the Board that set a target of 15% of Salt River’s retail sales to be met through sustainable resources by 2025.

Tell us about your public power utility´s innovative programs, partnerships, and commitments to clean and efficient energy!

Last Update: March 2011.