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's session had many energy bills to oppose (HB2248, SB1175, HB2737 in particular).  These died at the end of the session, but the concepts could be presented in the future.

Status of 2021 Session Bills:
DEAD-HB 2248: Corporation Commission; Electric Generation Resources
Alarm bells are ringing by environmentalists over HB2248 (and Senate bill 1175). These would prohibit “Arizona Corporation Commission from adopting or enforcing any policy, decision or rule that directly or indirectly regulates critical electric generation resources used or acquired by public service corporations within Arizona’s energy grid without express legislative authorization. (Sec. 1) 2.” The bill cripples the ACC from doing its job. (Kerr, Gowan, Gray and others). The House passed a Senate committee 6-4 but was caught up in committee when the Legislature adjourned.

DEAD-SB 1175: Corporation Commission; Electric Generation Resources
See above.

DEAD-HB 2737: Corporation Commission Actions; Investigation
Dead. Environment – HB2737, would allow any lawmaker to order Arizona’s Attorney General to investigate the Arizona Corporation Commission and to require 10% of the commission’s operating budget to be withheld if the AZ Supreme Court determines this agency has exceeded its statutory authority or is not executing or enforcing statute. Sponsored by Jacqueline Parker (R-16). Probably aimed at curbing the ACC environmental regulations. Passed Committee of the Whole but not voted on in time.

Thanks to all who voiced their opposition to the above bills. It is imperative that we convey the negative impact passing bills such as these 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

On May 26th 2021, the Arizona Corporation Commission reconsidered and passed a Clean Energy Rules package. The energy rules package includes 100% carbon-free energy in Arizona by 2070. And the carbon reductions are requirements and not goals.

Revised carbon emissions reductions levels by the following:
• 50% by December 31, 2032
• 65% by December 31, 2040
• 80% by December 31, 2050
• 95% by December 31, 2060
• 100% by December 31, 2070

Most importantly, the passed rules retained all the beneficial policies and requirements around storage and distributed storage. Specifically, the rules include a 35% energy efficiency requirement, which is the nation’s first distributed storage/solar requirement, preferential treatment for energy procurement from coal-impacted communities and tribes, as well as a complete rewrite of the IRP rules that will require the Commission to approve, rather than acknowledge a preferred portfolio of resources.

This is not yet final, as a result of substantive changes made to the original Recommended Opinion and Order, the amended energy rules package will be sent back through the formal rulemaking process. An updated schedule will be implemented that will allow for written comments and public comment on the record. Interested parties can submit formal written comments to the docket beginning July 9, 2021 through August 20, 2021. Public comment sessions will be held on August 16 and 19, 2021, at 10am.

The passage of the Energy Rules as they presently stand reflects a significant win for ratepayers, for the people of Arizona and for the Solar Energy Industry.

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

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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Arizona Public Service Co. has announced that it plans to introduce a Residential Battery Pilot Program.

The pilot will be available to APS residential customers who install residential battery systems, enroll in a TOU (Time of Use) or TOU-plus-demand service plan and commit to discharging their batteries during on-peak periods. (Note: Rate requirements are waived for customers on grandfathered solar rates.) The pilot will help APS learn about battery performance in a variety of conditions and how batteries may create value for customers through improved management of energy demand at their residence and help reduce stress on the electric grid.

Full Article

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