Drivers Behind the Push for Repeal

Several factors are driving the ACC’s decision to move forward with repeal. First, falling technology costs and federal policies such as the Inflation Reduction Act have made renewable energy more cost-competitive without state-level mandates. Solar, wind, and battery storage projects are increasingly being pursued based on economics alone, raising questions about whether REST remains necessary.

Second, Arizona’s major utilities, including Arizona Public Service (APS) and Tucson Electric Power (TEP), have set their own long-term clean energy targets. APS has committed to reaching carbon neutrality by 2050, while TEP has announced plans to cut carbon emissions 80 percent by 2035. These commitments, regulators argue, could make REST redundant.

Third, some policymakers believe repealing REST will simplify regulatory obligations and reduce compliance costs. With new pressures around grid reliability and affordability, there is a concern that older mandates may no longer reflect present energy system needs. This has sparked debate on whether a voluntary, market-driven approach might offer more flexibility while still supporting growth in clean energy.

Stakeholder Perspectives

Utilities generally support the idea of regulatory flexibility, noting their own ambitious clean energy plans. Renewable energy developers, on the other hand, express concern that removing REST could weaken investment certainty, potentially slowing the pace of new projects. Investors often rely on policy stability as a signal for long-term viability, and uncertainty may impact financing for renewable infrastructure.

Consumer advocates are divided. Some highlight potential savings for ratepayers if compliance costs are reduced, while others caution that removing state-level requirements could undermine progress on clean energy affordability and resilience. Environmental organizations and community groups remain wary of repeal, arguing that mandates ensure accountability and equitable access to clean energy.

This spectrum of views underscores a larger national debate over the balance between state mandates and market economics. While some stakeholders see renewable portfolio standards as a foundation for consistent progress, others believe that voluntary targets and economic drivers are now sufficient.

Potential Impacts of Repeal

With the repeal process underway, Arizona could see both risks and opportunities. On one hand, renewable project pipelines may face greater uncertainty, particularly for smaller developers relying on state-level policy support. Investment confidence may also be affected, as mandates often serve as a stable anchor for long-term planning.

On the other hand, the strong economics of solar and storage, combined with generous federal tax credits, may continue to drive significant growth even without REST. Corporate procurement of renewable energy is another factor that could maintain momentum, as companies increasingly commit to net zero and seek local clean energy supply.

The future of Arizona’s energy mix will depend on how these dynamics interact. Without REST, the state will rely more heavily on market drivers, utility goals, and federal incentives. The result could be either a smoother, more flexible transition or a slower pace of deployment if voluntary commitments prove insufficient.

Conclusion

The repeal of REST highlights a pivotal question for Arizona’s clean energy policy: whether regulatory mandates remain essential in a landscape shaped by declining costs and strong federal incentives. Utilities’ voluntary commitments suggest that progress may continue even without state requirements, yet concerns remain over investment certainty and equitable access to clean energy.

Arizona’s decision will carry implications beyond its borders, offering insights into how states balance mandates with market forces in shaping the energy transition. The outcome will reveal whether the state can maintain leadership in renewable adoption through market mechanisms alone or if mandates remain a necessary tool to ensure sustained progress.

References

• Utility Dive
• APS
• TEP