HOUSEHB2248 FLOOR- AMENDMENT551R EXPLANATION- BillH Number:Ver       House Engrossed   corporation commission;

HBelectric 2248generation Griffinresources Floor  Amendment  Repeals  the  prohibitionState onof theArizona CorporationHouse Commissionof adoptingRepresentatives orFifty-fifth enforcingLegislature anyFirst policy,Regular decisionSession or  rule  regulatingHOUSE theBILL types2248 of  electric  generation  resourcesAN thatACT public  serviceAmending corporationstitle use40, orchapter acquire2, withinarticle Arizona's1, energyArizona gridRevised withoutStatutes, legislativeby authorization.adding section 40-213;

Declaresrelating thatto it is the public policy of Arizona that public service corporationscorporations. pursue using clean energy resources and reducing carbon emissions provided the mix of generation resources is the lowest cost method of providing safe and reliable electricity when considering system-wide costs to meet customer demand.

Requires  public  service(TEXT corporationsOF toBILL deriveBEGINS atON leastNEXT thePAGE) following  percentageBe ofit retailenacted kilowattby salesthe fromLegislature renewableof energy resources by the followingState dates:of Arizona:

•Section 1. 12% by December 31, 2022;

•Title 13%40, chapter 2, article 1, Arizona Revised Statutes, is amended by Decemberadding 31,section 2023;40-213, to read:

•START_STATUTE40-213. 14% by December 31, 2024;

andRegulation •of 15%critical byelectric Decembergeneration 31,resources; 2025 and each year thereafter.

Clarifiesrenewable thatenergy theseresources; requirements do not prohibit the Corporation Commission from exercising its ratemaking or statutory authority over public service corporations.

Authorizes the Corporation Commission to adopt rules to ensure public service corporations comply with this act.

Prohibits the Corporation Commission from adopting or enforcing any policy, decision or rule that increases or decreases the renewable energy generation thresholds specified in this act or that regulates public service corporations' carbon emissions.

Adds:

• Definitions for carbon emissions, clean energy resources, lowest cost method and renewable energy resources.

Amendment explanation prepared by Paul Bergelin Phone Number (602) 926-3458 pb 2/23/2021 • A legislative finding that regulating carbon emissions from energy generation for retail electric sales is a statewide concern necessary to protect public health, safety and welfare.

Repeals the retroactivity clause.

Amendment explanation prepared by Paul Bergelin Page 2 _________________________________________ Fifty-fifth Legislature Griffin First Regular Session H.B.

2248 GRIFFIN FLOOR AMENDMENT HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.

2248 (Reference to printed bill) Page 1, strike lines 5 through 8, insert "renewable energy resources;

ITIt ISis THEthe PUBLICpublic POLICYpolicy OFof THISthis STATEstate THATthat PUBLICpublic SERVICEservice CORPORATIONScorporations SHOULDshould PURSUEpursue THEthe USEuse OFof CLEANclean ENERGYenergy RESOURCESresources ANDand THEthe REDUCTIONreduction OFof CARBONcarbon EMISSIONSemissions RESULTINGresulting FROMfrom THEthe GENERATIONgeneration OFof ENERGYenergy FORfor RETAILretail ELECTRICelectric SALES,sales, PROVIDEDprovided THEthe MIX"mix Lineof 9,critical strikeelectric "ORgeneration ACQUIRED";resources used by each public service corporation to meet its customers' needs is the lowest cost method of providing safe and reliable electricity services while taking into consideration the system-wide costs associated with meeting customer demand for services at all times of each day and throughout all seasons of the year.

after "BY" insert "EACH" Line 10, after "SERVICE" strike remainder of line Strike lines 11 and 12, insert "CORPORATION TO MEET ITS CUSTOMERS' NEEDS IS THE LOWEST COST METHOD OF PROVIDING SAFE AND RELIABLE ELECTRICITY SERVICES WHILE TAKING INTO CONSIDERATION THE SYSTEM-WIDE COSTS ASSOCIATED WITH MEETING CUSTOMER DEMAND FOR SERVICES AT ALL TIMES OF EACH DAY AND THROUGHOUT ALL SEASONS OF THE YEAR.

THEThe CLEANclean ENERGYenergy ANDand CARBONcarbon EMISSIONSemissions REDUCTIONreduction POLICYpolicy OFof THISthis STATEstate REQUIRESrequires PUBLICpublic SERVICEservice CORPORATIONScorporations TOto DERIVEderive ATat LEASTleast THEthe FOLLOWINGfollowing PERCENTAGEpercentage OFof RETAILretail KILOWATTkilowatt SALESsales FROMfrom RENEWABLErenewable ENERGYenergy RESOURCESresources BYby THEthe FOLLOWINGfollowing DATES:dates:

TWELVETwelve PERCENTpercent BYby DECEMBERDecember 31, 2022.

THIRTEENthirteen PERCENTpercent BYby DECEMBERDecember 31, 2023.

FOURTEENFourteen PERCENTpercent BYby DECEMBERDecember 31, 2024.

FIFTEENfifteen PERCENTpercent BYby DECEMBERDecember 31, 2025 ANDand FORfor EACHeach YEARyear THEREAFTER."thereafter. House Amendments to H.B.

2248C. Page 1, line 14, strike "SETTING ELECTRICITY RATES FOR" insert "EXERCISING ITS RATEMAKING OR STATUTORY AUTHORITY OVER" Between lines 14 and 15, insert:

"D.This section does not apply to any policy, decision or rules adopted before June 30, 2020.

THEd. COMMISSION MAY ADOPT RULES TO ENSURE PUBLIC SERVICE CORPORATIONS COMPLY WITH THIS SECTION.

THEThis COMMISSIONsection MAYdoes NOTnot ADOPTprohibit ORthe ENFORCEcorporation ANYcommission POLICY,from DECISIONexercising ORits RULEratemaking THATor INCREASESstatutory ORauthority DECREASESover THEpublic PERCENTAGESservice PRESCRIBEDcorporations. IN SUBSECTION B OF THIS SECTION OR OTHERWISE CONFLICTS WITH THE REQUIREMENTS PRESCRIBED IN SUBSECTION B OF THIS SECTION OR THAT DIRECTLY OR INDIRECTLY REGULATES A PUBLIC SERVICE CORPORATION'S CARBON EMISSIONS." Reletter to conform Line 15, strike the comma insert ":

e.

The commission may adopt rules to ensure public service corporations comply with this section.  The commission may not adopt or enforce any policy, decision or rule that increases or decreases the percentages prescribed in subsection B of this section or otherwise conflicts with the requirements prescribed in subsection B of this section or that directly or indirectly regulates a public service corporation's carbon emissions.

f.

For the purposes of this section:

"CARBON"Carbon EMISSIONS"emissions" MEANSmeans CARBONcarbon EMISSIONSemissions RESULTINGresulting FROMfrom THEthe COMBUSTIONcombustion OFof FOSSILfossil FUELS,fuels, SUCHsuch ASas COAL,coal, PETROLEUM,petroleum, NATURALnatural GAS,gas, OIL,oil, SHALEshale ORor BITUMEN.bitumen.

"CLEAN"Clean ENERGYenergy RESOURCES"resources" INCLUDESincludes SOLAR,solar, WIND,wind, BIOMASS,biomass, GEOTHERMAL,geothermal, NUCLEARnuclear ANDand HYDROELECTRIChydroelectric TECHNOLOGIEStechnologies THATthat GENERATEgenerate ELECTRICITY.electricity.

3."3. Between lines 19 and 20, insert:

"4."critical electric generation resources" includes any generation resource used or acquired by a public service corporation, including solar, wind, biomass, geothermal, nuclear, hydroelectric, fuel-cell technology, natural gas or coal or any other petroleum fuel source.

"LOWEST4. COST METHOD" MEANS THE METHOD OF MEETING CUSTOMERS' ENERGY NEEDS THAT RESULTS IN THE LOWEST AMOUNT OF EXPENSES AND RATE BASE THAT THE COMMISSION'S ESTABLISHED RATEMAKING PRACTICES ALLOWS A PUBLIC SERVICE CORPORATION TO RECOVER FROM RATEPAYERS.

"Lowest cost method" means the method of meeting customers' energy needs that results in the lowest amount of expenses and rate base that the commission's established ratemaking practices allows a public service corporation to recover from ratepayers.

"RENEWABLE"Renewable ENERGYenergy RESOURCES"resources" INCLUDESincludes SOLAR,solar, WIND,wind, BIOMASS,biomass, GEOTHERMALgeothermal ANDand HYDROTHERMALhydroelectric TECHNOLOGIEStechnologies THATthat GENERATEgenerate ELECTRICITY."electricity. Line 24, after "resources" insert "beyond the requirements prescribed in section 40-213, subsection B, Arizona Revised Statutes, as added by this act," Line 28, strike the second "and" insert a period -2- House Amendments to H.B.