HCR 2017 — supporting nuclear energy

HCR2017 - 532R - HS Ver       HouseSenate Engrossed House Bill       State of Arizona House of Representatives Fifty-third Legislature Second Regular Session       HOUSE CONCURRENT RESOLUTION 2017       A CONCURRENT resolution   supportingproposing thean generationamendment andto usethe Constitution of nuclearArizona; energy in arizona.

 amending  article (TEXTXV, OFConstitution BILLof BEGINSArizona, ONby NEXTadding PAGE)section  20; Whereas, reliable, clean, affordable energy is vital to Arizona's economy and way of life;

andrelating Whereas,to forrenewable overenergy. three decades, Arizona's economy has been powered by clean, carbon-free energy generated by the largest nuclear power plant in the country;

and  Whereas,  nuclear(TEXT powerOF isBILL bothBEGINS cleanON andNEXT affordable,PAGE) providing  millionsBe ofit Arizonaresolved residentsby withthe powerHouse atof ratesRepresentatives farof lowerthe thanState those of otherArizona, sourcesthe ofSenate energy;concurring:

and1.  Title Whereas,This constitutional amendment shall be known as athe base-load"Clean fueland resource,Affordable nuclearEnergy powerfor isa theHealthy mostArizona reliableAmendment." and2.  Article resilientXV, sourceConstitution of power,Arizona, providingis energyproposed forto Arizonabe 24amended hoursby peradding day,section 720 daysas perfollows week,if 365approved daysby perthe year;voters and on proclamation of the Governor:

and20.  Renewable Whereas,energy nuclearrequirement Section 20.  A.  Power of the corporation commission to promote renewable energy has1.  The servedcorporation ascommission shall evaluate the backboneaffordability of retail electricity, the country'swell‑being of this state and the reliability and resiliency of the electrical grid in connection with the renewable energy supplyrequirements forin overthis fiftysection years;within ninety days after the effective date of this section.  Based on this evaluation, the corporation commission shall decide whether to implement the renewable energy requirements in this section.

and2.  If, Whereas,as inthe additionresult toof providingthe reliable,corporation low-costcommission's energy,evaluation nuclearin powerparagraph plants1 haveof enormousthis economicsubsection, benefits,the employingcorporation thousandscommission offinds workersthat andthe producingcumulative millionseffect of dollarsthe renewable energy requirements in taxthis revenue;section would adversely affect any of the following, the corporation commission may not implement those renewable energy requirements, but instead it may consider one or more alternatives to this section that alleviate these adverse effects:

and(a)  the Whereas,affordability theor Unitedcost States Department of Energymonthly andelectricity thebills Federalpaid Energyby Regulatory Commission have cautioned that the prematureretail shutdownelectricity customers of nuclearaffected powerutilities. plants could jeopardize both the nation's electric reliability and the ability to combat climate change;

and(b)  the Whereas,reliability the premature closure of nuclearthe powerelectrical plantsgrid wouldand requirethe statesdelivery to find other sources of energyelectric thatservices areto typicallyretail moreelectric expensivecustomers. and less reliable than nuclear power.

Therefore(c)  the Bewell‑being it resolved by the House of Representativesthis ofstate. the State of Arizona, the Senate concurring:

ThatB.  Definitions the1.  "Affected Membersutility": of the Legislature support the ongoing use of nuclear power in Arizona as a safe, affordable, reliable and carbon-free source of energy generation and express their commitment to policies that ensure nuclear energy continues to thrive in an increasingly challenging energy environment.

(a)  Means a public service corporation serving retail electric load in Arizona.

(b)  Does not include a member‑owned nonprofit cooperative corporation.

2.  "Annual renewable energy requirement" means the portion of an affected utility's annual retail electricity sales that must come from eligible renewable energy resources.

3.  "Conventional energy resource" means an energy resource that is non­renewable in nature, such as natural gas, coal, oil, and uranium, or electricity that is produced with energy resources that are not renewable energy resources.

4.  "Renewable energy resource" means an energy resource that is replaced rapidly by a natural, ongoing process and that is not municipal solid waste combustion, trees larger than 12 inches in diameter, nuclear or fossil fuel.

5.  "Distributed generation" means electric generation sited at customer premises, providing electric energy to the customer load on that site or providing wholesale capacity and energy directly to the local utility distribution company for use by multiple customers in contiguous distribution substation service areas.  The generator size and transmission needs shall be such that the plant or associated transmission lines do not require a certificate of environmental compatibility from the corporation commission.

6.  "Distributed renewable energy resource" means an energy resource from distributed generation technologies including biogas electricity generators, biomass electricity generators, geothermal generators, fuel cells that use only renewable fuels, new hydropower generators of 10 MW or less, solar electricity resources, biomass thermal systems, biogas thermal systems, commercial solar pool heaters, geothermal space heating and process heating systems, renewable combined heat and power systems, solar daylighting, solar HVAC systems, solar industrial process heating and cooling, solar space cooling, solar space heating, solar water heating, and wind generators of 1 MW or less and that is not municipal solid waste combustion, trees larger than 12 inches in diameter, nuclear or fossil fuel.

7.  "Distributed renewable energy requirement" means a portion of the total electricity sales for which an affected utility must obtain distributed renewable energy credits derived from resources that qualify as distributed renewable energy resources.

8.  "Renewable energy credit" means the unit created to track KWH derived from an eligible renewable energy resource or KWH equivalent of conventional energy resources displaced by distributed renewable energy resources.

9.  "Distributed renewable energy credit" means the unit created to track KWH derived from a distributed renewable energy resources or KWH equivalent of conventional energy resources displaced by distributed renewable energy resources.

10.  "Utility distribution company" means a public service corporation that operates, constructs, or maintains a distribution system for the delivery of power to retail customers in Arizona.

C.  Eligible renewable energy resources 1.  "Eligible renewable energy resources" shall include electricity from a renewable energy resource delivered to Arizona customers that is generated from biogas electricity generators, biomass electricity generators, distributed renewable energy resources, eligible hydropower facilities, fuel cells that use only renewable fuels, geothermal generators, hybrid wind and solar electric generators, landfill gas generators, new hydropower generators of 10 MW or less, solar electricity resources, and wind generators.

2.  "Eligible hydropower facilities" are hydropower generators that were in existence prior to 1997 and that increase capacity due to improved technological or operational efficiencies or operational improvements, in which case the KWH that are eligible to meet the annual renewable energy requirements shall be limited to the new, incremental KWH output resulting from the capacity increase that is delivered to Arizona customers.

3.  "New hydropower generator of 10 MW or less" is a generator, installed after January 1, 2006, that produces 10 MW or less and that is either:

(a)  A low-head, micro hydro run-of-the river system that does not require any new damming of the flow of the stream;

or (b)  An existing dam that adds power generation equipment without requiring a new dam, diversion structures, or a change in water flow that will adversely impact fish, wildlife, or water quality;

or (c)  Generation using canals or other irrigation systems.

4.  Except as provided in subsection c(2), eligible renewable energy resources shall not include facilities installed before January 1, 1997.

D.  Renewable energy credits 1.  One renewable energy credit shall be created for each KWH derived from an eligible renewable energy resource, including distributed renewable energy resources.  Initial ownership of the renewable energy credit shall be assigned to the owner of the eligible renewable energy resource.

2.  One distributed renewable energy credit shall also be created for each KWH derived from a distributed renewable energy resource and each 3,415 British thermal units of heat produced by a solar water heating system, solar industrial process, heating and cooling system, solar space cooling system, biomass thermal system, biogas thermal system, or solar space heating system.

Initial ownership of the distributed renewable energy credit shall be assigned to the owner of the distributed renewable energy resource.

3.  An owner of a renewable energy credit or distributed renewable energy credit may transfer such credits to another party.  Except in the case of distributed renewable energy resources, affected utilities must demonstrate the delivery of energy from eligible renewable energy resources to their retail consumers such as by providing proof that the necessary transmission rights were reserved and utilized to deliver energy from eligible renewable energy resources to the affected utility's system, if transmission is required, or that the appropriate control area operators scheduled the energy from eligible renewable energy resources for delivery to the affected utility's system.

E.  Annual renewable energy requirement 1.  If required by the corporation commission, each affected utility must satisfy an annual renewable energy requirement by obtaining renewable energy credits from eligible renewable energy resources.

2.  An affected utility's annual renewable energy requirement shall be calculated each calendar year by applying the following applicable annual percentage to the retail KWH sold by the affected utility during that calendar year:

(a)  in not less than 12% (b)  in not less than 14% (c)  in not less than 16% (d)  in not less than 20% (e)  in not less than 24% (f)  in not less than 28% (g)  in not less than 32% (h)  in not less than 36% (i)  in not less than 40% (j)  in not less than 45% (k)  2030 and each year thereafter not less than 50% 3.  An affected utility may use renewable energy credits acquired in any year to meet its annual renewable energy requirement.  Once a renewable energy credit is used by any affected utility to satisfy the requirement in this section, the credit is retired and cannot be subsequently used to satisfy these requirements or any other regulatory requirement.

An affected utility that trades or sells environmental pollution reduction credits or any other environmental attributes associated with KWH produced by an eligible renewable energy resource may not apply renewable energy credits derived from that same KWH to satisfy the requirements in this section.

F.  Annual distributed renewable energy requirement 1.  If required by the corporation commission, each affected utility must satisfy an annual distributed renewable energy requirement by obtaining distributed renewable energy credits from distributed renewable energy resources.

2.  An affected utility's distributed renewable energy requirement shall be calculated each calendar year by applying the following applicable annual percentage to the retail KWH sold by the affected utility during that calendar year:

(a)  2020 not less than 3% (b)  2021 not less than 3.5% (c)  2022 not less than 4% (d)  2023 not less than 4.5% (e)  2024 not less than 5% (f)  2025 not less than 5.5% (g)  2026 not less than 6% (h)  2027 not less than 7% (i)  2028 not less than 8% (j)  2029 not less than 9% (k)  2030 and each year thereafter not less than 10% 3.  An affected utility may use distributed renewable energy credits acquired in any year to meet its annual distributed renewable energy requirement.  Once a distributed renewable energy credit is used by any affected utility to satisfy the requirement in this section, the credit is retired and cannot be subsequently used to satisfy these requirements or any other regulatory requirement.  An affected utility that trades or sells environmental pollution reduction credits or any other environmental attributes associated with KWH produced by a distributed renewable energy resource may not apply distributed renewable energy credits derived from that same KWH to satisfy the requirements in this section.