WRA Mini Pod: A Win in Arizona

While the recent rollbacks of national climate policy and backtracking of hard-fought wins are especially concerning - they aren't the whole story. there is another key venue where wins are happening. 

The states. 
 
States and local governments have the power to set energy regulations, emissions reduction goals, and fund critical clean infrastructure and transportation. They can protect land and water and make critical decisions about how to leverage funds to protect the environment.  

Many of these battles happen in state legislatures, and some of them happen in utility commissions - bodies that help regulate utilities and often make key decisions when it comes to enforcing state climate policy.  

In 2025, things in Arizona are as dire as ever. Extreme heat and drought plague the state. AI data centers promise to strain an already stressed system. Meanwhile, Arizona has limited commitment to meaningful pollution climate goals and no clear plan for handling the data center boom and the energy and water demands it will bring.
 
Back in 2024 we did an episode on what was happening at the Arizona Corporation Commission, a key energy regulatory body in Arizona. On last year’s podcast we covered some of the mistakes being made by the ACC. Today, we are talking about a major win we saw against the ACC that advances our goals. 

2 Degrees Out West is a podcast from Western Resource Advocates, an environmental conservation organization that's focused on the Interior West. WRA works across seven states to protect our climate, land, air, and water. WRA protects and advocates for Arizona, Colorado, Utah, New Mexico, Nevada, Montana, and Wyoming.

2 Degrees out West is a podcast for advocates and decision makers who want to fight climate change and its impacts across the West.

On 2 Degrees Out West we talk with climate experts and advocates to bring you stories, experiences, and insights from their work in the places we call home.

It is Hosted by Dave Papineau

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Transcript

ACC Mini Pod_mix_FINAL

[00:00:00] Dave Papineau (Host): While the recent rollbacks of National Climate Policy and the backtracking of hard fought winds are especially concerning, they aren't the whole story. Yes, the federal government should use its influence to meet the science-based climate goals that we know we need. But there is another key venue where wind are happening the.

[00:00:19] Longtime advocates like WRA know that almost all climate winds happen at the state level. States and local governments have the power to set energy regulations, emissions reductions, goals, and fund critical clean infrastructure and transportation. They can protect land and water and make critical decisions about how to leverage funds to protect the environment.

[00:00:38] Many of these battles happen in state legislatures and some of them happen in utility commissions. Bodies that help regulate utilities and often make key decisions on state climate policy. In 2025, things in Arizona are as dire as ever extreme heat and drought plague. The state AI data centers promised to strain an already stress system.

[00:00:58] Meanwhile, Arizona has the limited commitment to meaningful pollution reduction and climate goals, and no clear plan for handling the data center boom and the energy and water demands it will bring back. In 2024, we did an episode on what was happening at the Arizona Corporation Commission, a key energy regulatory body in Arizona.

[00:01:16] On last year's podcast, we covered some of the mistakes being made by the ACC. Today we are talking about a major win we saw against the A CC that advances our goals. This win not only protects the local community's voice, but sets the tone for wins going forward in the state on this two degrees out West Mini Podcast, a win in Arizona.

[00:01:39] Emily Doerfler: So my name is Emily Doerfler. I am the Clean Energy attorney in Arizona. I represent WRA in a multitude of forums, but mostly I represent WRA at the Arizona Corporation Commission. When it comes to litigation or general proceedings, things like that, 

[00:01:58] Dave Papineau (Host): Emily says WRA is celebrating a significant win in Arizona.

[00:02:03] Emily Doerfler: WA is celebrating a really important win in the Arizona court system. We filed suit against the Arizona Corporation Commission and we just found out from the Superior Court that our arguments prevailed. 

[00:02:17] Dave Papineau (Host): She says that this win started back in 2024 when a utility in Arizona started planning to build a new gas power plant expansion 

[00:02:25] Emily Doerfler: in.

[00:02:26] 2024, probably spring of 2024. WRA caught word that the Unisource Electric had filed what we call a disclaimer of jurisdiction, which is a very interesting and questionable process that would allow the Line Siding committee, which handles the siting of large energy facilities to basically exempt certain power plants.

[00:02:53] From receiving BA a Certificate of Environmental Compatibility. This certificate basically notes that a thorough environmental review has been done of the facility before its construction starts. It's one of the few reviews of power plants that occurs before the power plant is built, for example or once the construction of the plant is built.

[00:03:19] You would only see the review of the prudency of those costs in a Ray case after the fact. So it's really important to get this review beforehand. Now without this review. Basically, there is no review of a power plant and it's compatibility with the surrounding environment and surrounding communities before it's being built.

[00:03:42] So this is a really important process in Arizona. 

[00:03:48] Dave Papineau (Host): The core of this problem started when Unisource Electric tried to argue a novel interpretation of an existing law. 

[00:03:54] Emily Doerfler: Every plant in Arizona that has a nameplate capacity of over 100 megawatts needs a certificate of environmental compatibility. Now, the statute that created this requirement was established all the way back in, in the 1970s.

[00:04:11] So this is a very old statute and what UMSE attempted to do through this disclaimer of jurisdiction is interpret this old statute to mean that a plant is not an entire facility, but is rather each individual. Turbines generator set. So each plant has for example, peaker plants have multiple turbine generator sets.

[00:04:40] Plant could include 20 turbine generator sets. Under this interpretation that UNSE was attempting to, validate a plant could have. 800 megawatts of capacity, but not require a CEC because each generator turbine set within that plant would be underneath that 100 megawatt threshold. 

[00:05:10] Dave Papineau (Host): If that argument sounds a little bit weird to you, we agree with you, and so would Arizona State regulatory precedent.

[00:05:17] This argument has been tried before and been struck down 

[00:05:20] Emily Doerfler: now. Common sense just dictates that is just not true. The commission for over 50 years has demonstrated that they do not believe that to be true, but UNSE nonetheless was attempting to assert this really novel interpretation. Now, the line citing committee, which again is in charge of siting facilities in Arizona.

[00:05:43] Just did not buy it. The decision by the line citing committee to say that UNSE needed a CEC for this plant, it was a nine to two vote. So it was overwhelmingly in favor of WRA and other plaintiffs that were arguing against this really absurd interpretation. But unfortunately, when that decision was brought up to the commission to review, the commission decided the opposite.

[00:06:11] And this is a huge issue because the CEC process is vital to both the environment of in, in Arizona and to surrounding communities and those negatively affected by power plants like the one in this case. 

[00:06:29] Dave Papineau (Host): So what did WRA do? 

[00:06:32] Emily Doerfler: So WRA first we filed what we call a request for reconsideration. So we filed a document that said, Hey, commission, we think that this decision is wrong, and here's a number of reasons why we think that is the case.

[00:06:47] The commission denied that motion of reconsideration. So the next step for WRA was to take this case to Superior Court. So along with the Attorney General's office and along with Sierra Club, WRA, filed suit in Arizona Superior Court stating that the decision by the commission was unreasonable was.

[00:07:11] Arbitrary and should be overturned, which would then in turn require UNSE and other plants like it to receive certificates of environmental compatibility. 

[00:07:23] Dave Papineau (Host): Emily says that W's argument in particular that the actions of the A CC went against the state's constitution was absolutely key in winning this case.

[00:07:32] Emily Doerfler: W was particularly excited about our win for this case because W's argument was the one that prevailed WRA and alone made the argument that. Not only was the commission's decision arbitrary and unreasonable, it was also illegal because the commission did not have the authority under its existing statutes under the constitution or under its administrative codes to review disclaimer of jurisdiction decisions by the line citing committee.

[00:08:06] So this would apply not only to this UNSE case. But also any other future disclaimers of jurisdiction as long as the Superior Court decision stands. 

[00:08:17] Dave Papineau (Host): If this decision stands, Emily says, it helps set a new precedent that protects communities and rate payers in the future 

[00:08:22] Emily Doerfler: for these specific decisions. The Arizona Corporation Commission under its existing statutes and regulations cannot review.

[00:08:34] Disclaimers of jurisdiction, they would still have the opportunity to review any certificate of environmental compatibility once that certificate has been received. But the important thing is that the commission only reviews decisions that concern whether or not, or to grant A CEC, not whether or not a CEC, is needed in the first place. Now there's some subtlety to that because arguably the commission could turn around and say, we are denying the CEC because it isn't necessary. But at that point, a utility will have already done all the work of doing that environmental review, and that in and of itself is a positive.

[00:09:27] Dave Papineau (Host): It would limit the power of the A CC to make similar decisions in the future. 

[00:09:31] Emily Doerfler: It gives local communities the opportunity to be heard, whether or not the commission wants them to be heard or not. So wins like this are important because there has to be accountability. There has to be a reasonableness of decisions.

[00:09:48] There has to be a emphasis on facts and what is the law and what is reality. And this case seemed to oppose all of those really foundational aspects of reasonable governing. So this not only, ensures that future power plants that are being built near local communities and important historical artifacts and important environmental resources go through that review and are considered 

[00:10:27] Dave Papineau (Host): when we're talking about state level climate winds.

[00:10:30] These are the kinds of winds that we're after. 

[00:10:33] Emily Doerfler: This win also represents that state advocacy matters that, things that concern the environment and things that concern climate change can happen at the state level. There is no part of this that involves federal jurisdiction. It is just at the state level and it is impactful at the state level and that matters.

[00:10:57] The people of Arizona matter. 

[00:11:00] Dave Papineau (Host): In Arizona, there's a lot of important things happening in regards to energy regulation. Emily says the A c. C is currently considering removing Arizona's only commitment to renewable energy. 

[00:11:09] Emily Doerfler: First and foremost, the Arizona Corporation Commission is attempting to repeal the renewable energy standard and tariffs rules, which for short 'cause it's a mouthful, is the rest rules.

[00:11:23] These rules require Arizona utilities to derive a percentage of their. Energy generation, resources from renewable generation. These rest rules are the only rules in Arizona that require utilities to use renewable generation. The commission is also attempting in a exploratory docket that they just opened to explore the issues that data centers have had in Arizona specifically.

[00:11:55] So data centers result in the need for a great deal of new generation, and with that new generation and transmission, there comes really, scary risks of shifting the cost of building those resources out to residential rate payers who frankly already are having difficulty affording the energy bills that they have so that exploratory docket can.

[00:12:22] Concerns mostly that, that factor of cost shifting and WA is really hopeful that it can assist the Arizona Corporation Commission in developing common sense policies around the management of data centers for utilities. 

[00:12:38] Dave Papineau (Host): Today's episode proves that the battle to win climate change doesn't just happen in Washington, DC States like Arizona are hurting.

[00:12:46] Climate change is here. The impacts are hurting people now, and WRA is in the places that matter, fighting for a better future. As Emily said, this win has nothing to do with any federal body, and it clears the way from more winds down the road. If you want to hear more from any of the episodes we referenced, specifically the episode on the Arizona Corporation Commission from last fall, you can find the links to those in the show notes.

[00:13:14] Our work to protect the West is cumulative and made possible by people like you who care. Chances are, if you listen to this whole podcast on a critical win in an energy planning case, you are smart and you already know how impactful local action can be. We fought for states and local utilities to electrify their grids and reduce harmful fossil fuel emissions, all while protecting public land, wildlife, and thousands of miles of streams.

[00:13:38] And you can help us do even more until December 9th. Your donation will have double the impact thanks to a matching gift from W'S Board of directors and senior leadership. So a $5 gift is actually $10 for the climate. It may feel small, but with your help, we can build the power to make a difference for the places we live and love.

[00:13:57] Donate to WRA today and see a better future for the west.