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Energy Policy in Arizona: a Plan for Sustainable Development

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Energy Policy in Arizona: a Plan for Sustainable Development COM5.2:E53/3 COPY 2 Energy Policy in Arizona: a Plan for Sustainable Development Policy and Recommendations Advisory Committee on Energy Policy and Planning State of Arizona December 1990 1 ~ I z 53/ .3 Energy Policy in Arizona: A Plan for Sustainable Development Presented to the Joint Legislative Task Force on Energy Policy and Planning of the Arizona Legislature By the Advisory Committee on Energy Policy and Planning William J. Murphy Committee Chair 1990 Richard Bingmann (1989) Dr. Daniel Brennan Douglas M. Brooks Dr. Rocco Fazzolari (1990) Mark Ginsberg ARIZONA DEPT OF LIB PA t:iv Lina Gormley ARCHIVE~ r<.. PI 113 1,r qFt .( >RDS Dr. Clyde N. Holland Daniel Hunter (Chair - 1989) Renz Jennings OCT 1 3 1999 Wally Kolberg Barbara Norton Bob Preston STATE: Uuvuavu .... " I~ J. R. Ramirez Ron Rayner George Ross Amie Schwalb Dr. Robert Seale Martin Shultz Dr. Byard Wood ARIZONA DEPT. OF LIBRARY Guy Yates (1989) ARCHIVES & PUBLIC RECORDS (See Appendix E for Committee Appointments) OCT 13 1999 Including Participation by: Larry Auge Dennis Beals Jerome P. Dion Dick Forman Jane Gray Biff Hoffman Tamara Huddleston Jane Hyler Roland James David L. Kezell Mary Martin Vince Marziani Jay Taylor Ray Williamson Robert L. Young Staff Support provided by the Arizona Energy Office of the Department of Commerce Jerome P. Dion, M.U.P. Project Director Michael Walters, M.P.A. Editor and Project Analyst Special Contributions by: Stephen Ahearn Maureen Bureson Becky Edgar-Nelson Michael Fry Mark Ginsberg Joan Laurence Joe Marquis Amanda Ormond Ray Williamson Copyright 1990 Advisory Committee on Energy Policy and Planning Arizona Energy Office 3800 N. Central Avenue, Suite 1200 Phoenix, Arizona 85012 All Rights Reserved. Table of Contents List of Tables . iii Acknowledgements ........ .v Recommended State Energy Polley . 1 Introduction .3 Sustainable Development in Arizona .5 Energy Situation Analysis .9 Fundamental Suppositions 14 Goals and Objectives ... 15 Priority Recommendations 16 Section 1 - Energy-Related Environmental Quality 21 Chapter 1 Energy-Related Environmental Quality 27 Section 2 - Energy Efficiency 37 Chapter 2 Buildings 43 Chapter 3 Transportation 55 Chapter 4 Delivery Systems 65 Chapter 5 Manufacturing Systems 71 Section 3 - Planning for the Future 75 Chapter 6 Planning Process 81 Chapter 7 Public Awareness 91 Section 4 -Affordability ..... 95 Chapter 8 Affordability . 97 Section 5 - Technology Development and Demonstration 103 Chapter 9 Solar and Renewable Energy . 107 Chapter 10 Research. Development and Demonstration 111 Appendix A- House Concurrent Resolution 2013 115 Appendix B - House Bill 2249 . 119 Appendix C - Energy Services Coordination . 125 Appendix D -Arizona Corporation Commission 149 Appendix E - Committee Appointments 153 Appendix F - Minority Reports 157 Glossary ...... 175 Energy Bibliography 177 Energy Policy in Arizona - List of Tables Table 1 Primary and End-Use Energy Consumption by Source for Arizona . 12 Table 2 Net Inter-state Flow of Electricity /Losses for Arizona 13 Table 3 Electricity Consumption by Sector 13 Table 4 Sources and Applications of Alternative Fuels 29 Table 5 Transportation Energy Consumption by Fuel Type 30 Table 6 Environmental Benefits Derived from Substituting Secondary Materials for Virgin Resources 36 Table 7 Energy Consumption Per Unit of Gross Domestic Product in Western Industrialized Nations 40 Table 8 Historical Energy Consumption Per Capita in Arizona 40 Table 9 U.S. Commercial Building Types 44 Table 10 States with Energy Conservation Building Codes 48 Table 11 U.S. Residential Consumption of Primary Energy by End-Use 50 Table 12 Various Retrofit Options for Existing Buildings 53 Table 13 Distances Between Home and Major Activities In Phoenix 56 Table 14 Gasoline Consumption Per Capita for Selected Cities 56 Table 15 State Gasoline Taxes as of 1 January 1990 57 Table 16 Population Density of Metropolitan Areas 61 Table 17 Mandated Corporate Average Fuel Economy Standards 63 Table 18 1985 Industrial Energy Consumption by Group 71 Table 19 Petroleum Prices Vary Worldwide 98 Table 20 Electricity Prices Vary Substantially in the West 99 Table 21 Low and Moderate-Income Energy Programs in Arizona 100 Energy Policy in Arizona iii Acknowledgements Energy has come to shape and power in our technological society. It is the basis of huge industries with vast global financial and political power. The development of a comprehen­ sive state energy policy is an innovative and essential element in good public policy malting. The evolution of Energy Policy in Arizona: A Planfor Sustainable Developmentwas possible only with the help of many individuals. My thanks are extended to Jenny Norton of the Arizona House of Representatives for the vision, interest and continuous support that caused this committee to be created and to complete its task on schedule. At Jenny's insistence, the committee was composed of diverse interests-which has proven to be its greatest strength and at times, many thought its greatest curse. The diversity of its members has led to long and heated discussions which has promoted the development of a broad consensus upon priorities and actions. Next, I would like to thank the committee members. These people gave almost continuously of their time, energy, and expertise. Facing a seemingly endless array of public policy considerations, to where near the end of our work it seemed as though all we did was attenq meetings and review the hundreds of pages of documentation provided to the committee. As a benefit of the committee's broad area of expertise relative to the production, distribution, and consumption of energy, the committee could function largely as their own resource. Where the committee felt additional input was necessary, presentations by experts were arranged, including: John R Balfour, Assistant Marketing Manager, AEG Westinghouse Transportation Systems, International Magnetic Transit of America, Inc. David Beny, Chief, Economics & Research, Arizona Corporation Commission Hany Braun, Research Analyst, Trans Energy Corporation Thomas G. Burns, Manager, Economic Staff, Corporate Planning & Analysis, Chevron Corporation Marvin Cohen, Attorney at Law, Sacks, Tierney, Kasen & Kerrick, P.A. Jerrome P. Dion, Planning/Policy Program Manager, Arizona Energy Office Pete Eckert, Site Engineer, STAR Center, Arizona Public Service Company Pete Ewen, Economist, Arizona Corporation Commission Michael Grant, Attorney at Law, Winston & Strawn Law Offices Jack Haenichen, Senior Technical Advisor, Arizona Energy Office Dave K. Heck, Coordinator, Policy Analysis, Marketing, Manufacturing, Supply & Distribution. Chevron U.S.A. Inc. Panos Iannou, Electrical Engineer, Arizona Corporation Commission David Kezell, Center for Energy Systems Research, Arizona State University Energy Policy in Arizona V Mike Lowe, Manager, Rates & Corporate Economics, Salt River Project Betty J. McColley, Energy Conservation Program Manager, Arizona Energy Office Joe McGuirk, Manager, Research Program, STAR Center, Arizona Public Service Company Neal Manske, Deputy Director, Public Transit Department, City of Phoenix John Norman, Chief Engineer, Arizona Corporation Commission Jenny Norton, Arizona State Representative Karen Novachek, Program Administrator, Community Services Administration, Arizona Department of Economic Security Don Robinson, Manager, Rates & Regulation, Arizona Public Service Company Lou Schmitt, Deputy Director, Transportation Planning Division, Arizona Depart- ment of Transportation Dan Shein, House Majority Research Analyst Darrell Smith, Director, Resource Planning, Salt River Project Karen E. Smith, Industrial Gas Engineer, Southwest Gas Corporation Vito Stagliano, Acting Associate Deputy Undersecretary, U.S. Department of Energy Fred Thompson, Facility Manager, STAR Center, Arizona Public Service Company Ruth Valencia, Energy Data Administrator, Arizona Energy Office David Zavaleta, Engineer, General Motors Proving Grounds Additionally, the Junior League of Phoenix was invaluable in conducting 11 workshops which provided the committee with crucial input. Many of the final recommendations of this report were first mentioned or reinforced at these informal workshops. My special thanks goes to the hundreds of Arizonans who in a series of public hearings held in Flagstaff, Yuma, Tucson, Tempe, and Prescott, took the time and energy to review and comment upon the committee's work. At the end, it was the views of those stalwart Arizonans who recognized the importance of our mission, that weighed most heavily upon the essence of the document. But, it was the assistance given by the Arizona Energy Office staff that provided the greatest support to our committee. This included: secretarial support provided by Becky Edgar­ Nelson and Mabel Brown who sat through countless meetings furiously scribbling notes of the committee's actions, impressions, and directions; guidance and work on planning, logistics, and media issues related to the public input process, which was provided by Maureen Bureson and Joan Laurence; overall direction of the staff and guidance on issues of governmental affairs, provided by Jerry Dion. The committee is particularly indebted to Michael Walters for his efforts at drafting and re-drafting the document-often with limited direction. The committee's editorial committee, consisting of Mark Ginsberg, Doug Brooks, and Dennis Beals for Marty Shultz, took time in the waning holiday hours of December to put the finishing touches upon the document. WilliamJ. Murphy,
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