Committee advances bill requiring utilities to keep 85% 'reliable' generation by 2030 after contentious debate

The House Committee on Natural Resources, Energy and Water voted Feb. 2 to advance an amended version of House Bill 23-31, a measure that would require electric distribution utilities to ensure that at least 85% of generating capacity required to serve retail customers consists of “reliable resources” on or after Jan. 1, 2030.

Sponsor Representative Heath framed the measure as a response to what he called a voluntary, costly retirement of baseload generation and a rapid expansion of intermittent resources such as solar and wind. Heath and supporters argued that protecting a high share of reliable, dispatchable generation is necessary to avoid rolling blackouts and rising rates as demand grows. Greg Blackie of the Arizona Free Enterprise Club told the committee that independent analyses project high costs for replacing coal with renewables plus storage and warned of California-style outages and higher rates.

Opponents, including Sandy Barr of the Sierra Club’s Grand Canyon Chapter and other environmental groups and county representatives, said the bill would effectively privilege fossil fuels and nuclear options, restrict local planning, and could increase fuel-price vulnerability due to expanded gas use. Testimony included claims that renewables combined with storage can be reliable and that requiring an 85% threshold risks picking winners in energy technology.

The committee considered and adopted a strike-everything HEAP amendment and a subsequent HEAP amendment to that amendment; after debate the committee voted to return HB 23-31 as amended with a due-pass recommendation. The chair later recorded the vote as 6 ayes and 4 nays. Several members offered explanations of their votes on the record, reflecting the bill’s split support.

What comes next: The bill will proceed to the House floor. Because the measure alters regulatory expectations for utilities and the Arizona Corporation Commission, further hearings and technical work are likely if the bill receives further consideration.