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The Potential and Power of Renewable Energy Credits to Enhance Air Quality and Economic Development in Arizona

Renewable energy holds the potential to address two needs in Arizona: cleaner air and a more vibrant economy. This article will recommend several changes to Arizona law and policy with respect to the State’s Renewable Energy Standard and Tariff (REST). Specifically, we suggest the State: (i) increase the percentage of renewable energy required under the REST schedule; (ii) allow a certain percentage of the REST to be met through RECs that are “unbundled” from the underlying electrons; (iii) require the use of an online tracking system; and, (iv) establish transparent noncompliance penalties.