Author: Will Humble

EPA Administrator Lee Zeldin ended the federal Solar for All program last week.

The $7B initiative (funded under the Inflation Reduction Act’s Greenhouse Gas Reduction Fund) had been designed to bring rooftop and community solar to low and middle-income households, with a Tribal focus. Zeldin’s action is a $156M loss for AZ tribes.

The funding that had already been awarded will now be revoked, including $25M for the Hopi Utilities Corporation to install solar panels across the Hopi Tribe, $62M to expand access for Tribal nations statewide, and seed projects like Arizona’s first green bank, rural solar-plus-storage systems, and even solar/down-payment assistance for new homebuyers.

The impact is especially painful for Arizona’s Tribal communities, which were on track to gain some energy sovereignty, reduce dependence on outside utilities, and keep more economic activity within their own communities.

Like so many other actions by this administration – Zeldin’s decision will likely be challenged in court. For now, clean, affordable energy for Arizona’s most underserved communities is on hold and contracts canceled.

This week, the Arizona Corporation Commission voted to start the process of repealing the state’s Renewable Energy Standard and Tariff Rules, known as the “REST rules.”

Those rules were put in place back in 2006. They required big utilities to get 15% of their electricity from renewable sources by 2025. Part of that had to come from small-scale sources like rooftop solar on homes and businesses.

The all-Republican ACC said the rules aren’t needed anymore because monopoly utility companies already have their own clean energy plans.

That claim is false. Last week APS announced it’s ditching all its clean energy goals including the pledge to get 45% of its power from renewables by 2030. At least APS’s CEO admitted their earlier ‘goals’ were never really goals at all – just ‘aspirations’.

APS Abandons Clean Energy Goals & While Demanding Yet Another Rate Hike

The rulemaking change will likely take months, but it’s clear the ACC staff will eventually get their REST repeal.

None of this should surprise anyone. Voters put commissioners in office who openly favor fossil fuels over clean energy. This week’s vote is just the latest sign of what happens when pro-carbon politicians run the agency in charge of regulating Arizona’s monopoly utilities.

Note: Because the ACC’s REST repeal rulemaking relates to their constitutional authority to regulate monopoly utilities they’re exempt from Governor’s Regulatory Review Council review, meaning the repeal is a done deal and GRRC won’t be able to stop the repeal.

When the ACC proposes rules related to statutory authority given to them by the Legislature, they are subject to GRRC – but the REST rulemaking will be under their constitutional authority.

August 13, 2025

Kevin Thompson, Chair
Nick Myers, Vice Chair
René Lopez
Lea Marquez Peterson
Rachel Walden

Arizona Corporation Commission
1300 W. Washington Street
Phoenix, AZ 85007

Re: Leave the Renewable Energy Standard and Tariff Rules
Docket RE-00000A-24-0026

Dear Commissioners,

The Arizona Public Health Association urges you to reject the proposal to repeal the Renewable Energy Standard and Tariff Rules (“REST Rules”). Repeal would raise power bills, weaken grid reliability, and threaten one of Arizona’s most vibrant job-creating industries.

Since 2006, the REST Rules have ensured that utilities steadily increase clean energy use 15% by 2025, with 30% from distributed sources like rooftop solar.

APS has already abandoned its voluntary goal of 45% renewable power by 2030. Without enforceable rules, Arizona risks losing investment and jobs to other states. More dependence on fossil fuels means more exposure to price spikes and supply disruptions.

The Commission’s duty is to ensure rates are just, reasonable, and supported by evidence. The evidence here is clear: the REST Rules protect ratepayers, support economic growth, and safeguard public health.

Repealing the REST Rules would raise power bills for Arizona families and businesses, undermine the reliability of our electric grid, and jeopardize a vibrant renewable energy industry that supports tens of thousands of jobs and generates tens of millions of dollars in tax revenue annually.

Adopted in 2006, the REST Rules were groundbreaking: they required Arizona utilities to get 15% of their electricity from renewable resources by 2025, with 30% from distributed energy sources like customer-owned rooftop solar. The Commission recognized that enforceable rules—not voluntary pledges—were necessary to drive investment, innovation, and cost reductions.

That vision has been realized. Since the REST Rules took effect, the cost of utility-scale solar has dropped 84% and wind costs have declined 55%. Both are now cheaper to build than new natural gas, coal, or nuclear plants.

Renewables protect ratepayers from volatile natural gas prices. Arizona’s abundant sunshine has made us the fifth-largest solar-producing state, and distributed solar reduces the need for costly peak-hour energy imports.

The economic benefits are equally compelling. Renewable energy now accounts for nearly half of Arizona’s power sector jobs. In 2023 alone, the solar industry generated over $155 million in state, county, and local tax revenues. Rural and urban communities benefit from renewable energy investments, which ripple through the state’s economy in construction, manufacturing, operations, and maintenance.

The rationale for repeal, reducing compliance and administrative costs, is dwarfed by the economic, environmental, and public health benefits of maintaining the REST Rules. Moreover, APS’ decision this week demonstrates that utilities won’t keep voluntary renewable commitments.

The Commission’s ratemaking authority carries the responsibility to ensure rates are just, reasonable, and supported by substantial evidence. Stripping away the REST Rules would expose ratepayers to unnecessary price volatility and undercut the long-term stability of our energy system.

We urge you to update, but not repeal, the REST Rules, ensuring they’ll continue to deliver affordable, dependable, clean energy for millions of Arizonans while sustaining a thriving industry that benefits our economy and public health.

Sincerely,

Will Humble, MPH

Executive Director

Arizona Public Health Association