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Arizona voters should reject big green tax on poor

opinion-WEB

Liberals love to talk about helping the poor and the middle class, so why are they pushing one of the most regressive taxes in modern times?

Proposition 127 would require half of Arizona electric power production by 2030 to come mostly from wind and solar power. Green groups and activists like billionaire Tom Steyer say that Prop. 127 will be virtually cost-free to Arizonans. Really? In my study for the Goldwater Institute, I examined the disappointing results of states like California, New York, and Vermont, which have been duped into similar energy regulations. States with renewable mandates of 50 percent or more, as required by 127, have average power costs that are roughly 50 percent higher than states that allow utilities to buy the cheapest energy from the power grid.

Stephen Moore
Stephen Moore

A recent Wall Street Journal analysis found that California, which has already moved to a 50 percent green energy mandate, charges businesses and families 67 percent more for electricity than cheaper states like Arizona. Thanks in part to its stringent renewable mandate, the WSJ reports, “California electricity rates have surged 30 percent since 2011 compared to an 8 percent increase nationwide.”

Florida, by contrast, which uses natural gas, solar energy, clean coal, and nuclear power and doesn’t have a clean energy mandate, has seen its utility costs fall by 3 percent over this same period. Does Arizona want to be like high-cost California or low-cost Florida?

Prop. 127’s hardest-hit victims will be low-income families. The U.S. Census Bureau reports the poor pay about five times more of their income on energy than rich families do. The energy mandate is Robin Hood in reverse: It steals from the poor to subsidize the rich.

These price hikes might make some sense if the scheme would actually clean the air—but it won’t. The mandate doesn’t include nuclear power or natural gas as “clean energy” sources, even though they’re among the environmentally safest producers of energy. Even coal-burning plants are far cleaner today than 30 years ago with pollution reductions of 30, 40 and even 50 percent for lead, carbon monoxide, and smog.

The initiative would foolishly restrict Arizona’s natural gas use at a time when America is in the midst of the biggest shale gas boom in history. Natural gas prices have fallen over the past decade by 70 percent, thanks to domestic shale gas production. Conversion to natural gas is the reason the United States has reduced its greenhouse gas emissions more than virtually any other nation over the last decade.

Nuclear energy is even cleaner because it emits virtually zero air pollutants into the atmosphere. Why would a green mandate exclude nuclear and potentially force the closure of the Palo Verde plant employing hundreds of Arizonans?

Yes, sunny Arizona is an ideal state for solar power. As it gets cheaper, the state should use solar whenever it makes financial sense. But politicians shouldn’t force you to buy it regardless of cost. It doesn’t make sense to insert into the state Constitution a requirement on energy use that locks Arizona into 50 percent wind and solar. Betting the state’s financial future and job base on wind and solar power is a huge risk to Arizona’s economic health.

— Stephen Moore is a senior fellow at the Heritage Foundation and author of “Fueling Freedom: Exposing the Mad War on Energy” (Regnery, 2015). His new study for the Goldwater Institute is: “Arizona’s ‘Clean Energy’ Initiative: All Pain, No Gain.”

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The views expressed in guest commentaries are those of the author and are not the views of the Arizona Capitol Times.

Prop 127 triggers record-setting spending

California billionaire Tom Steyer has spent more than $18 million so far in his bid to convince Arizonans to support a constitutional mandate that half of all electricity come from renewable sources by 2030.

And that doesn’t even count the nearly $4 million he has put into efforts to oust some Republicans from office, particularly Attorney General Mark Brnovich.

New campaign finance reports show that the fight over Proposition 127 is shaping up to be the most expensive in Arizona history.

It isn’t just what Steyer, through his NextGen Climate Action Committee, has put into getting the measure on the ballot and promoting it.

On the other side of the equation, the parent company of Arizona Public Service, the state’s largest electric utility, has poured $21.8 million into quashing the measure.

APS isn’t alone.

In this photo taken Wednesday, June 27, 2018, environmental activist & billionaire Tom Steyer poses at his offices in San Francisco. Arizona’s largest utility is fiercely opposing a push to mandate increased use of renewable energy in the sun-drenched state, setting up a political fight over the measure funded by Steyer. (AP Photo/Eric Risberg)
In this photo taken Wednesday, June 27, 2018, environmental activist & billionaire Tom Steyer poses at his offices in San Francisco.  (AP Photo/Eric Risberg)

Rural electric cooperatives have put another $417,000 into their own campaign to convince their voters and ratepayers to reject the initiative. And UniSource Energy Corp., parent of Tucson Electric Power, has a separate $50,000 campaign against Proposition 127.

All that eclipses the record set in 2002 when Native American tribes put $21.1 million into a successful initiative campaign to give them the exclusive right to operate casino-style gaming in Arizona in exchange for the state getting a share.

That same election the Colorado River Indian Tribes spent $10.3 million in their failed effort to get voters to adopt a different measure that would have provided for more types of gambling and less revenue sharing with the state. And the horse and dog track owners spent $7.7 million supporting their own proposal which would have allowed them to have slot machines as well.

The massive spending on renewable energy comes as each side hopes to convince voters — and ratepayers in particular — of the financial implications of Proposition 127.

APS in particular is relying on a study it commissioned at Arizona State University. There, economists, working with assumptions provided with the utility, said that by 2030 customers could see up to another $1,900 added to their annual utility bills if the mandate is approved.

Prop 127 supporters got their own report from the National Resource Defense Council which predicts that the lower cost of solar would mean residential bills would go down about $360 a year by 2030.

Renewable energy isn’t the only thing commanding a lot of campaign cash.

The Arizona Association of Realtors and its national organization reported it had built up a fund of $8 million in its support of Proposition 126.

That measure seeks to alter the state constitution to make new sales taxes on services permanently off limits. Proponents, operating under the banner of Citizens for Fair Tax Policy, have run extensive commercials arguing that “politicians are looking for more money” and that, without a constitutional ban, “they’re going to do it by taxing veterinary services, health care, every service they can find.”

A newly formed No on Proposition 126 committee had not collected or spent anything as of the end of the campaign filing period.

The other hot-button issue on the ballot has to date not gathered anywhere near the dollars of the first two.

Save Our Schools has so far spent $426,000 on its bid to get Arizonans to vote “no” on Proposition 305.

This measure is a referendum of 2017 legislation which would expand who is eligible to get vouchers of state dollars to send their children to private and parochial schools.

Until now, those vouchers, formally known as empowerment scholarship accounts, have been limited to students with special needs, foster children, children living on reservations and those attending public schools rated D or F.

The Republican-controlled Legislature voted to remove all those preconditions, a measure signed — and supported — by Gov. Doug Ducey. But in a political compromise, they agreed to cap the number of vouchers at about 30,000 by 2022.

Foes of expansion gathered enough signatures to block the change from taking effect until voters get to ratify or reject it at the ballot this year.

A group called Yes for Ed AZ has spent about $26,000 so far to convince people to vote “yes” and allow the law to take effect. It is being financed largely by the Center for Arizona Policy and the Goldwater Institute.

Much of the money for the Save Our Schools campaign committee comes from a similarly named group set up as a “social welfare” organization which can take individual and corporate donations without disclosing donors.

There was no immediate response to a request for a list of major donors to that organization.

Proposition 306, by comparison with the others, has gathered relatively little publicity — and relatively few dollars.

One provision would bar candidates who get public funding from using those dollars to buy services from political parties. But the potentially more far-reaching part of the measure would subject the rules adopted by the bipartisan Citizens Clean Elections Commission to oversight by the Governor’s Regulatory Review Council. And that panel consists of people appointed by Doug Ducey, who has been a beneficiary of the kind of anonymous donations that the commission has adopted rules to force donors into the open.

Proponents have collected $10,500, most of that from the Arizona Free Enterprise Club, an organization that has provided financial help to elect candidates of its choice but has refused to disclose its donors.

Foes have organized under the name of Arizona Advocacy Network Against the Dark Money Lobbyist Power Grab. They have collected slightly more than $4,900, with more than half of that coming from Tom Collins, the executive director of the Clean Elections Commission.