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Corporation Commission Should Increase Clean, Renewable Energy

Arizona Capitol Reports Staff//May 6, 2005//[read_meter]

Corporation Commission Should Increase Clean, Renewable Energy

Arizona Capitol Reports Staff//May 6, 2005//[read_meter]

We know that if we produce more of our energy from renewable sources available in Arizona including solar and wind power we will have less air pollution and less adverse public health impacts. Renewable energy also means more jobs, more wages, more economic output, and more energy dollars flowing in state.

The Arizona Corporation Commission (ACC) is poised to make a far-reaching decision about our state’s electric policies that will impact Arizona’s economy and the public’s health. The draft rule amendments for the Environmental Portfolio Standard issued by the ACC on April 22, are a step in the right direction but fall short of capturing the economic and public health benefits that renewable energy in Arizona can provide.

One important and necessary change is how clean, renewable energy is defined. Solar, wind, clean biomass (plant-based) and geothermal are the sources of renewable energy that we should be using to power our businesses and homes while moving us down an energy path that will give us more energy independence, provide a more stable energy supply, improve rural economies, and protect public health. The ACC needs to remove “municipal solid waste” from the proposed definition of biomass as this is not a clean, renewable energy source. Municipal solid waste incinerators are responsible for releases of a host of highly toxic pollutants including dioxins, mercury, lead, PCBs and other harmful chemicals.

The ACC’s draft rule recommends 5 per cent of Arizona’s energy come from renewable sources in 2015 and 15 per cent in 2025 while the Arizona Public Interest Research Group (PIRG) Education Fund advocates 10 per cent by 2015 and 20 per cent by 2020, which is in line with neighboring states. (Right now the percentage is 1.1 per cent.)

“Renewing Arizona’s Economy: The Clean Energy Path to Jobs and Economic Growth,” a report issued by the Arizona PIRG Education Fund last month, documents the economic development potential of renewable energy in Arizona, with a focus on how investing in renewable energy will lead to jobs and increased economic output. Through developing enough renewable energy to supply 10 per cent of total electricity consumption by 2015 and 20 per cent by 2020, investing in renewable energy would:

Create jobs, increasing net employment by an annual average of 380 jobs per year, for a total of 6,100 person-years by 2020;

Increase wages by a net annual average of $66 million, with a total net present value of $570 million;

Increase the gross state product by a net annual average of $200 million, with a net present value of $1.6 billion;

Help rural areas, directly generating over $600 million in property taxes to fund education and other local government services;

Save water, conserving a total of 23 billion gallons; and

Reduce pollution; in the year 2020 annually avoiding emissions of:

• More than 11,000 tons of smog-forming nitrogen oxide (the equivalent of taking more than 500,000 cars off the road);

• More than 9,000 tons of soot-forming sulfur dioxide (13 per cent of 2000 emissions from electricity generation); and 8 million tons of global-warming carbon dioxide (the equivalent of taking 1.5 million cars off the road).

Investing in a clean, renewable energy supply is a smart decision for Arizona. By developing homegrown and sustainable resources, Arizona would keep more energy dollars here in the state, generating thousands of new high-paying jobs, boosting Arizona’s economy, conserving scarce water supplies and improving public health.

The Arizona Corporation Commission should chose a solid path to clean, renewable energy, such as solar and wind power and increase the state’s Environmental Portfolio Standard to 10 per cent by 2010 and 20 per cent by 2020.—

Diane E. Brown is executive director of the nonprofit Arizona Public Interest Research Group Education Fund, which conducts research and education on issues in Arizona. PIRG’s latest report, “Renewing Arizona’s Economy: The Clean Energy Path to Jobs and Economic Growth,” can be downloaded at http://www.arizonapirg.org/ reports/economyreport.pdf

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