Arizona has a long history of wise water stewardship. Since the 1950s, we have reduced our water use even as our communities have grown. Arizona’s economy continues to thrive—even now, amid a global pandemic—precisely because we know how to adapt. And, over the past few decades, Arizona’s business community has played a critical role in stewarding our resources and advocating for commonsense solutions.

Arizona’s business community understands that a secure and sustainable water supply will remain a fundamental component of our state’s economic vitality. Without water, our businesses and communities cannot grow.

In 2019, the Arizona ˿����Ƶ of Commerce & Industry supported the Lower Basin Drought Contingency Plan, a historic water agreement that positioned Arizona to manage our Colorado River supply in times of shortage through voluntary conservation. DCP was an important step in securing Arizona’s water supply and reducing the risk of far deeper shortages.

DCP will not prevent shortages or eliminate that risk completely, which is why it is critical for us to continue re-examining our water code and regulations to ensure that we incentivize conservation.

On February 18, Gov. Doug Ducey signed HB 2056 into law, representing a bi-partisan, unopposed win for Arizona’s businesses, communities, and the environment. The bill, referred to as the “no forfeiture” bill, allows agricultural water users with legal entitlements to water to file a conservation plan notice outlining the conservation measures that they will implement. In exchange, these water users are guaranteed that any water conserved as part of the plan does not constitute an abandonment or forfeiture of the water to which the user is entitled.

This commonsense reform addressed a risk—or in some cases a perceived risk—in prior law that a surface water user choosing to conserve water could be forced to forfeit valuable water rights.

While this may not appear to be a traditional business issue, reducing the threat and fear of forfeiture removes a harmful disincentive to conserve and will encourage water users to implement best practices to conserve water throughout the state. This conservation, in turn, frees up additional water that can support the diverse needs of Arizona farms, communities, businesses, and the environment, and gives farmers, ranchers, and other surface water users the flexibility they need to engage in smart water conservation practices with full confidence that their water rights will be protected. Water security and flexibility means businesses in Arizona can continue to grow and operate with a more dependable and long-term water supply. With this new law, Arizona continues to improve upon its water laws and systems, which is good for business and good for the state.

If the last year has taught us anything, it is that we must adapt to survive. That has been true throughout Arizona’s history—our communities and businesses have always found new and innovative ways to thrive in our unique desert environment. Amid 21 years of drought, the reality of less rain, and declining allocations from the Colorado River, it is clear that we in Arizona need to make the most of every drop of water in order to maximize economic, community, and environmental benefits across the state.

Luckily, Arizonans know how to come together to protect our state’s water resources. By passing HB 2056 into law, we in Arizona have once again demonstrated critical leadership on water, fundamentally changing a key tenet of western water law and eliminating the “use it or lose it” concept. Businesses care about these issues, and we must celebrate this achievement. This is a win for us all.

Garrick Taylor is the interim president and CEO of the Arizona ˿����Ƶ of Commerce & Industry

The post Opinion: New legislation amending “use it or lose it” law bolsters Arizona’s reputation for wise water stewardship appeared first on ˿����Ƶ Business News.

Arizona Public Service (APS) is one of very few electric utilities worldwide to achieve a double ‘A’ score for climate and water stewardship this year from the not-for-profit charity CDP, which operates a global disclosure and scoring program designed to encourage investors and businesses to act on environmental issues. 

Only four out of almost 6,000 utilities received a double A score this year. One was Pinnacle West Capital Corporation, of which APS is its principal subsidiary. It also is the only North American utility to receive both ratings this year. 

“I am extremely proud to announce that for the second straight year, we have secured a place on their prestigious #CDP A List for tackling climate change and acting to ensure water security in our state,” Eric Massey, director of environmental, social and governance (ESG) policy and reporting for APS, after CDP released the scores last month.  

CDP uses a detailed and independent methodology to assess companies, allocating a score of A to D based on the comprehensiveness of disclosure, awareness and management of environmental risks, and demonstration of best practices associated with environmental leadership.

“Taking the lead on environmental transparency and action is one of the most important steps businesses can make, and is even more impressive in this challenging year marked by COVID-19,” CDP CEO Paul Simpson said in extending congratulations to the companies who made the A List this year. 

APS commitment to 100 percent carbon-free electricity 

APS received the score for its transparency and efforts to protect air and water including a commitment to deliver 100 percent clean, carbon-free electricity by 2050. 

The utility has been adding battery energy storage to its utility-scale solar plants in Arizona and expanding its renewable energy portfolio, including recently signing a power purchase agreement for 200 megawatts of additional wind energy. It has reduced its consumption of groundwater 22 percent from 2014 to 2019. The utility also operates the Palo Verde Generating Station, the largest nuclear plant and the single-largest generator of carbon-free electricity in the U.S.

CDP’s annual environmental disclosure and scoring process 

CDP, which recently celebrated its 20th year, created the global disclosure and scoring program to promote corporate environmental transparency and provide information for environmentally minded investors, companies, cities, states and regions to manage their environmental impacts.

In 2020, more than 515 investors with more than $106 trillion in assets and 150-plus major purchasers with $4 trillion in procurement spending requested companies to disclose data on environmental impacts, risks and opportunities through platform. More than 9,600 responded – the highest ever.

“The scale of the risk to businesses from climate change, deforestation and water insecurity is enormous, and we know the opportunities of action far outweigh the risks of inaction,” Simpson of CDP said. “Leadership from the private sector will create an ‘ambition loop’ for greater government action and ensure that global ambitions for a net zero sustainable economy become a reality.”

Arizona electric utilities facing forces of nature head on  

The recent CDP score is one of many examples of how Arizona’s three largest utilities — APS, Salt River Project (SRP) and Tucson Electric Power (TEP) — have become some of the most forward thinking companies when it comes to the environment.  

It’s a matter of survival. Arizona’s extreme heat and dry conditions present a unique challenge for electric companies. For example, over the past 25 years, about a dozen Arizona locations topped the nation for having the hottest year, including Buckeye, Laveen, the Yuma airport and Bullhead City. Phoenix is now the , according to national climate data. 

To address the forces of nature head on, the utilities have invested heavily in renewable and clean energy infrastructure and are advancing new technologies like battery storage and solar energy.

They also have been focused on protecting and conserving diminishing water supplies. 

SRP, for example, is involved in replenishing the state’s water supply through a massive public-private reforestation project, the Four Forest Restoration Initiative (). The Phoenix region’s largest water provider is also on target to meet its 2035 Sustainability Goals, which call for a reduction of CO2 emitted from generation by 65 percent by 2035 and 90 percent by 2050.

TEP, which has set a goal to provide more than 70 percent of its power from wind and solar resources by 2035, also has committed to eliminate the use of surface water for power generation and a 70 percent reduction in groundwater use.
To see the full list of companies that made this year’s CDP A List, along with other publicly available company scores, go to: .

The post APS scored among top utilities worldwide for climate, water stewardship appeared first on ˿����Ƶ Business News.