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Presentation 2. B.

Regular BOS Meeting

Meeting Date:	06/19/2018
Submitted For:	James Menlove	Submitted By:	Sherry Grice, Management Associate
Department:	County Manager

Information

Request/Subject

Resolution No. 18-06-03 Opposing NextGen's Climate Action 'Clean Energy for a Healthy Arizona' Ballot Initiative that would require Arizona utility companies to obtain 50% of their energy from renewable sources by 2030.

Background Information

NextGen Climate Action, an out-of-state group, funded by California Billionaire, Tom Steyer, has filed a ballot initiative with the Secretary of State's office that would amend Arizona's State Constitution to require that Arizona utility companies obtain 50% of their energy from renewable sources by 2030, less than 12 years from now.

Electric cooperatives provide an essential and irreplaceable public service for Arizona's rural residents, supplying life-preserving affordable and reliable power for hundreds of thousands of rural families.

An independent analysis by the Seidman Research Institute at Arizona State University's W. P. Carey School of Business finds that the "Clean Energy for a Healthy Arizona" ballot proposal would have devastating immediate and long-term impacts to be Arizona economy, including the loss of 547,000 job years, $72.5 billion in Gross State Product, and $42.5 billion in disposable personal income. The study's lead author, Dr. Timothy James, concluded that, "this ballot initiative would have a significant dampening effect on the Arizona economy...in lost jobs, reduced personal incomes and diminished economic productivity."

Evaluation

If passed, the 'Clean Energy for a Healthy Arizona' initiative would circumvent Arizona's current structure for regulating utilities, which has provided Arizona residents with some of the safest, most reliable and affordable energy in the country for over 100 years. It would enshrine in the state constitution a regulatory mandate that will dramatically increase electricity bills, especially those of low-income and fixed-income residents. The constitutional mandate could not be changed or modified without a costly ballot initiative.

The initiative would force Arizona residents to pay hundreds of millions of dollars for the construction of new infrastructure, including solar facilities and carbon-emitting natural gas plants that would be necessary to generate electricity when the sun is not shining, and wind is not blowing. It includes a requirement that 20% of utilities' renewable generation come from rooftop solar, which is the least efficient, most expensive form of solar.

The initiative would require Arizona utilities to shut down power plants that have been providing safe, affordable and reliable energy for decades, costing taxpayers tens of millions of dollars in lost tax revenue and hundreds of high-paying jobs. It would threaten the viability of the Palo Verde nuclear generating station, the largest source of clean, carbon-free energy in the country, and would require the closure of the Cholla and Springerville power plants. Overall, it would end up costing 3,000 Arizona families their jobs and eliminating tens of millions of dollars of essential tax revenue for Arizona schools and public safety.

The initiative will have a particularly devastating impact on the state's electric cooperatives, which do not have the financial capacity to absorb the costs that would result from this 50% renewable energy mandate.

Conclusion

Greenlee and Navajo Counties have passed resolutions opposing the "NextGen Climate Action" Ballot Initiative.

Recommendation

Staff recommends adopting this resolution opposing the "NextGen Climate Action" Ballot Initiative.

Suggested Motion

Information/Discussion/Action to adopt Resolution No. 18-06-03 and join other Arizona counties to oppose the "NextGen Climate Action" Ballot Initiative. (James Menlove)

Attachments
Resolution No. 18-06-03