Arizona Voters Should Reject Big Green Tax on Poor

by Stephen Moore
October 29, 2018

Liberals love to talk about helping the poor and the middle class, so why are they pushing one of the most regressive taxes in modern times?

Proposition 127 would require half of Arizona electric power production by 2030 to come mostly from wind and solar power. Green groups and activists like billionaire Tom Steyer say that Prop. 127 will be virtually cost-free to Arizonans. Really? In my study for the Goldwater Institute, I examined the disappointing results of states like California, New York, and Vermont, which have been duped into similar energy regulations. States with renewable mandates of 50 percent or more, as required by 127, have average power costs that are roughly 50 percent higher than states that allow utilities to buy the cheapest energy from the power grid.

A recent Wall Street Journal analysis found that California, which has already moved to a 50 percent green energy mandate, charges businesses and families 67 percent more for electricity than cheaper states like Arizona. Thanks in part to its stringent renewable mandate, the WSJ reports, “California electricity rates have surged 30 percent since 2011 compared to an 8 percent increase nationwide.”

Florida, by contrast, which uses natural gas, solar energy, clean coal, and nuclear power and doesn’t have a clean energy mandate, has seen its utility costs fall by 3 percent over this same period. Does Arizona want to be like high-cost California or low-cost Florida?

Prop. 127’s hardest-hit victims will be low-income families. The U.S. Census Bureau reports the poor pay about five times more of their income on energy than rich families do. The energy mandate is Robin Hood in reverse: It steals from the poor to subsidize the rich.

These price hikes might make some sense if the scheme would actually clean the air—but it won’t. The mandate doesn’t include nuclear power or natural gas as “clean energy” sources, even though they’re among the environmentally safest producers of energy. Even coal-burning plants are far cleaner today than 30 years ago with pollution reductions of 30, 40 and even 50 percent for lead, carbon monoxide, and smog.

The initiative would foolishly restrict Arizona’s natural gas use at a time when America is in the midst of the biggest shale gas boom in history. Natural gas prices have fallen over the past decade by 70 percent, thanks to domestic shale gas production. Conversion to natural gas is the reason the United States has reduced its greenhouse gas emissions more than virtually any other nation over the last decade.

Nuclear energy is even cleaner because it emits virtually zero air pollutants into the atmosphere. Why would a green mandate exclude nuclear and potentially force the closure of the Palo Verde plant employing hundreds of Arizonans?

Yes, sunny Arizona is an ideal state for solar power. As it gets cheaper, the state should use solar whenever it makes financial sense. But politicians shouldn’t force you to buy it regardless of cost. It doesn’t make sense to insert into the state Constitution a requirement on energy use that locks Arizona into 50 percent wind and solar. Betting the state’s financial future and job base on wind and solar power is a huge risk to Arizona’s economic health.

Stephen Moore is a senior fellow at the Heritage Foundation and author of “Fueling Freedom: Exposing the Mad War on Energy” (Regnery, 2015). His new study for the Goldwater Institute is: “Arizona’s ‘Clean Energy’ Initiative: All Pain, No Gain.”

Cross-posted from the Arizona Capitol Times.