May 2011

This week, the Salt River Project's (SRP) Board of Directors voted to increase the utility's goal for sustainable energy resources to 20% of all retail sales by the year 2020.  SRP's previous goal, set in 2006, was 15% of retail sales by 2025.  SRP defines "sustainable resources" to include hydro power and energy efficiency measures along with more commonly recognized renewable resources such as solar and wind.  Read more here.  Regulated utilities in Arizona, such as Arizona Public Service Co.  (APS) and Tucson Electric Power (TEP), are required by the Arizona Corporation Commission (ACC) to generate 15% of their retail sales from renewable resources by 2025 and to separately reduce energy consumption by 22% by 2020 through energy efficiency measures.  As a quasi-governmental entity, SRP is regulated by the State Legislature, not the ACC. read more

The Arizona Legislature adjourned sine die on April 20, 2011.  While in session, the Legislature enacted two key regulatory reform bills that will affect environmental and administrative law practitioners as well as regulated entities in the state.  House Bill 2665, sponsored by Rep. Amanda Reeve (R-Dist. 6), strengthens the protections available to entities regulated by state and county environmental agencies.  Senate Bill 1598, sponsored by a coalition of Republican senators, establishes a regulatory bill of rights applicable to local governments. read more

Top executives from the five biggest U.S. oil companies testified yesterday before the Senate Finance Committee regarding a bill that would eliminate certain tax breaks that currently save the companies approximately $2 billion per year.  The bill is called the Close Big Oil Tax Loopholes Act and was introduced by Sen. Robert Menendez (D-NJ).  Democrats claim that there is no justification for the tax breaks which amount to federal subsidies for established and highly profitable businesses.  They propose applying the additional tax revenue to the country's budget deficit.  Republicans, on the other hand, accuse the Democrats of political theater -- attacking oil companies to gain political favor with an American public that is already upset with oil companies because of high gas prices. read more