clean power development
(now: renewable resource
study committee)
DPAS/E |
Committee on Energy, Utilities and Technology |
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DPA |
Caucus and COW |
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X |
Third Read |
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As Passed the House |
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HB 2693 provides for the establishment of an Energy Efficiency Council by the Department of Commerce Energy Office. The bill also allows the Arizona Corporation Commission to adopt rules relating to distributed generation facilities and it requires Agricultural Improvement Districts to adopt renewable energy portfolios. Finally, HB 2693 requires the Department of Administration to use renewable energy on a graduated scale to power its Governmental Mall facilities.
The Committee of the Whole adopted HB 2693 as amended by the Committee on Energy, Utilities, and Technology. The bill now provides for the establishment of a Renewable Resource Study Committee.
Energy conservation standards for public buildings
The Department of Commerce Energy Office is currently charged with adopting energy conservation standards to be utilized for construction of all new capital projects. The standards, which are consistent with accepted national energy conservation standards, apply to all state buildings including those designed and constructed by school districts, community college districts, and universities.
Distributed Generation
Distributed generation systems include bio-mass based generators, combustion turbines, solar systems, and micro-turbines which are located near the point of use and are modular in design. Such systems may be connected to the power grid or operate independently. In contrast to large, central-station power plants, distributed power systems typically range from less than one kilowatt to tens of megawatts in size. In July of 1999, the Arizona Corporation Commission initiated a "General investigation of Distributed Generation and Interconnections (DGI) for potential retail electric competition rules consideration" under Docket No. E-00000A-99-0431. In June of 2000, the Commission issued a report on distributed generation that included recommendations for developing standards, policies and tariffs for distributed generation through the rulemaking process.
Use of renewable energy – DOA
Laws 2000, Chapter 280 established a graduated renewable energy use requirement for the Department of Administration. Specifically, the Department is required to use renewable energy to provide power to the Department’s facilities in the Governmental Mall as long as the cost is not five percent more than traditional power. The Department must follow the following renewable energy use:
On
or before January 1, 2003, one per cent.
On
or before January 1, 2004, two per cent.
On
or before January 1, 2005, three per cent.
On or before
January 1, 2010, ten per cent.
Development of renewable electrical technologies
In the year 2000 the Arizona Corporation Commission (ACC) adopted a renewable energy portfolio standard for power entities under the jurisdiction of the Commission (agricultural improvement districts are not regulated by the ACC). The standard requires regulated utilities to produce at least 0.2 percent of total power from renewable resources, fifty percent coming from solar. The percentage increases each year until 2007, when 1.10 percent of power produced must come from renewables. Utilities subject to the renewable energy portfolio standard may asses a surcharge not to exceed .000875 cent per kilowatt-hour or thirty-five cents per month for residential customers. For non-residential customers the surcharge may not exceed thirteen dollars per month. For those non-residential customers who consume more than three thousand kilowatts of power per month for three consecutive months, the surcharge may not exceed thirty-nine dollars per month.
· Directs the Department of Commerce to establish an Energy Efficiency Council to prescribe energy efficiency criteria for the purpose of reducing energy use in new state buildings and existing structures that are reconstructed, by ten percent per square foot of floor area by January 1, 2007.
· Allocates one percent of state building construction monies for the purpose energy efficiency, passive design and solar technology in state buildings.
· Requires counties and municipalities to develop model construction and energy codes.
· Allows the Corporation Commission to adopt rules relating to in-state distributed generation facilities.
· Provides that the rules shall address rate reform, interconnection costs, net metering, and transmission service fees.
· Removes the current requirement that the Department of Administration (DOA) meet minimum renewable energy usage levels if the cost of compliance does not exceed the cost of traditional power by more than five percent.
· Replaces the previous renewable energy requirement by requiring DOA to calculate the number of kilowatt-hours used by its Governmental Mall facilities in FY 2002. The number determined by DOA must then be used to calculate the percentage of renewable energy that must be used by Governmental Mall Facilities on a yearly basis beginning on or before January 1, 2003.
· Amends the current definition of solar energy device to include a roof-mounted system.
· Requires an Agricultural Improvement District to comply with the following:
· Generate or acquire .02 percent of its electricity from new solar or renewable resources.
· Increase this percentage on an annual basis until the year 2007. By 2007 the amount generated, or acquired, from new solar or renewable resources must be at least 1.10 percent.
· States that fifty percent of the energy generated or acquired to meet the renewable energy requirement must be generated by solar facilities.
· Allows districts to buy renewable energy credits to meet the required percentages.
· States that the district may impose an energy surcharge to assist in recovering the costs associated with the new requirement as follows:
· For residential customers the surcharge may not exceed .000875 cent per kilowatt-hour or thirty-five cents per month.
· For non-residential customers the surcharge may not exceed thirteen dollars per month.
· For non-residential customers that consume more than three thousand kilowatts of power per month for three consecutive months, the surcharge may not exceed thirty-nine dollars per month.
· Allows the district to use System Benefit Charge funds to meet the renewable energy requirements.
· Requires the Energy Advisory Council to review the activities of the Department of Commerce Energy Office and report its findings to the Legislature on or before December 1, 2002. The report must provide a review of the duties, responsibilities and funding of the Energy Office and make any necessary recommendations.
· Requires the Department of Commerce Energy Office to direct seventy-five percent of its consumer outreach towards renewable energy education.
· Establishes a renewable energy study committee. Requires the committee to submit an interim report on or before December 31, 2002 and a final report of its findings and recommendations to the Governor, the President of the Senate and the Speaker of the House of Representatives on or before December 31, 2003.
·
Includes a legislative intent section expressing
support for reliable and affordable power that minimally impacts communities
and the environment.
EUT
The Committee on Energy, Utilities, and Technology adopted a strike everything amendment to HB 2693, with further amendments, as follows:
· Establishes a Renewable Resource Study Committee.
· Provides that the Committee shall consist of the following members:
· Three members from the House appointed by the Speaker of the House of Representatives, not more than two of whom, from the same political party.
· Three members from the Senate appointed by the Senate, not more than two of whom, from the same political party.
· One member representing the State’s utility and water districts appointed by the Speaker of the House of Representatives.
· One member representing the renewable energy and energy efficiency industry appointed by the President of the Senate.
· The Director or the Director’s designee of the Residential Utility Consumer Office.
· The Director or the Director’s designee the Department of Administration.
· The Chairman of the Corporation Commission.
· The Committee is charged with following:
· Evaluating government policy relating to renewable energy.
· Examining the costs and benefits of renewable energy versus traditional power.
· Studying strategies for increased consumer education, public and private investment, as well as, coordination between government and the renewable energy industry.
· The Committee must submit an interim report by December 31, 2002, and a final report by December 31, 2003, outlining its findings, recommendations, and proposals to the Speaker of the House of Representatives, the President of the Senate and the Governor.
COW
The
Committee of the Whole adopted HB 2693 as amended by the Committee on Energy,
Utilities and Technology.
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45th Legislature
Second Regular
Session 3 April 9, 2002
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