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Empower ARIZONA emPOWER ARIZONA: TABLE OF CONTENTS Governor’s Letter Executive Summary 1. Energy Overview, Consumption and 10-Year Outlook ................................................. 1 a. Overview ................................................................................................................. 1 b. Consumption .......................................................................................................... 4 c. Arizona's Regulatory Framework .......................................................................... 12 2. Arizona Energy Resources .......................................................................................... 19 a. Coal ....................................................................................................................... 19 b. Natural Gas ........................................................................................................... 23 c. Nuclear .................................................................................................................. 25 d. Hydroelectric ........................................................................................................ 28 e. Solar ...................................................................................................................... 29 f. Wind ...................................................................................................................... 34 g. Biomass ................................................................................................................. 36 h. Geothermal ........................................................................................................... 38 i. Energy Efficiency .................................................................................................... 40 j. Water ..................................................................................................................... 44 3. Land Ownership and Use ............................................................................................ 49 a. Federal Lands ........................................................................................................ 49 b. State Trust Lands .................................................................................................. 52 c. Private Lands ......................................................................................................... 53 d. Tribal Lands ........................................................................................................... 55 e. Agricultural Lands ................................................................................................. 57 f. Mining Lands ......................................................................................................... 59 g. Military Lands ....................................................................................................... 61 4. Moving Power ............................................................................................................ 65 a. Transportation ...................................................................................................... 65 b. Pipeline Infrastructure .......................................................................................... 69 c. Transmission ......................................................................................................... 71 5. Energy Education, Workforce and Economic Development ...................................... 77 a. Energy Education and Workforce Development .................................................. 77 b. Energy Economic Development............................................................................ 80 c. Tax Revenue Data ................................................................................................. 83 d. Employment Data ................................................................................................. 83 Executive Energy Assessment and Pathways 2013 emPOWER ARIZONA: 6. The University Enterprise & Emerging Technologies ................................................. 87 a. University of Arizona ............................................................................................ 87 b. Arizona State University ....................................................................................... 88 c. Northern Arizona University ................................................................................. 90 The University Enterprise ........................................................................................... 91 Emerging Technologies .............................................................................................. 93 a. Microgrids ............................................................................................................. 93 b. Biofuels ................................................................................................................. 94 c. Algae ..................................................................................................................... 95 d. Energy Storage ...................................................................................................... 97 e. Nuclear Recycling .................................................................................................. 98 f. Fuel-Cell Technology ............................................................................................. 99 g. Solar Fuels ........................................................................................................... 100 7. Conclusion ................................................................................................................ 103 8. Contributors ............................................................................................................. 105 9. Glossary of Terms ..................................................................................................... 107 10. Appendices ............................................................................................................... 111 Executive Energy Assessment and Pathways 2013 emPOWER ARIZONA Executive Energy Assessment and Pathways 2013 emPOWER ARIZONA: Executive Summary EXECUTIVE SUMMARY Because energy production, generation, transmission, and conservation are vital to Arizona’s future, Governor Janice K. Brewer formed a Master Energy Plan Task Force in 2013. Arizona’s last energy plan was written in 1990 and an updated assessment was much needed to lead the state towards a strong and sustainable energy future. The 40 members of the Governor’s task force served on four subcommittees: Transportation, Fuels, and Infrastructure Planning; Business, Regulation, and Workforce; Environment, Natural Resources, and Land Use; and Technology Development. They met monthly to provide and consider information about the current status, key challenges and 10-year outlook for each subcommittee’s specialty area. After the information was compiled and approved, the Governor’s Office of Energy Policy convened statewide public meetings to encourage contributions from all stakeholders and further solicited experts to ensure the report was comprehensive and inclusive. The public meetings highlighted the importance of an energy blueprint for Arizona’s economy, job creation, and environment each of which rely heavily on Arizona’s human and energy resources. As a result, executive level goals were identified to: increase solar development; educate Arizona’s next generation of energy professionals on two levels: first, through energy education in high schools, and second through apprenticeship and job-training programs; reduce energy consumption; and establish an energy advisory board to address energy issues on an ongoing basis. Incorporating the considerable input provided to her, Governor Brewer created emPOWER Arizona: Executive Energy Assessment and Pathways, the guide that will help leaders make informed energy decisions to ensure Arizona has affordable and reliable energy resources. Arizona has a diverse mix of electric power generation that uses a combination of conventional and renewable resources. Further, energy development has a strong impact on Arizona’s economy, both directly by utilities and indirectly by every sector which uses energy. It takes power to mine copper, turn on lights in classrooms, drive to work, turn on ovens for the midday lunch rush and keep people comfortable in their homes. Because energy reaches deep into the economy, it is inextricably tied to job creation. Not only are Arizona’s utilities among its largest employers, they also produce a commodity that affects the other employers they serve. Executive Energy Assessment and Pathways 2013 emPOWER ARIZONA: Executive Summary Reliable energy connections are essential for large employers considering relocating to Arizona or expanding existent operations. Also, the cost of energy and what that will mean for a large and small employers’ bottom line has substantial implications in any relocation or expansion decision. While it is important to focus on the economic impacts of energy and how they affect Arizona’s residents, it is also important to consider the environmental results. Many more generations of Arizonans will follow ours, and it is up to all of us to make certain that the Grand Canyon State of the future is as breathtaking as it is today. This Executive Summary and emPOWER Arizona is an unprecedented state effort that consolidates under common goals eight
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