2017 Legislative Session Recap State & Local Affairs

Bills & Resolutions Introduced: 1,180 Bills Passed: 353 2017 Session Snapshot Total Days of Session: 122 Bills & Resolutions Introduced: 1,180 Bills Passed: 353 Bills Signed: 312 Bills Vetoed: 5 Resolutions Passed: 42 *Gov. has until May 20th to sign or veto the remaining 36 bills on his desk

Overall Session Highlights Governor’s Success $9.8B Spending Plan University Bonding 2% Teacher Pay Raise K-12 Performance Funding Less Contentious Session for APS

APS-Supported Legislation

Nuclear Emergency Management Biennial funding mechanism for PVNGS off-site emergency response plan Passed House & Senate Unanimously; Signed into law in March Will be considered at the Legislature again in 2019

Arizona Emissions Bank Expands the Arizona Emissions Bank to include mobile sources Creates economic development opportunities in AZ Passed the Legislature and was signed into law in April

Nuclear Power Support Resolutions Measure highlighting the operational excellence at PVNGS Measure urging Congress and the EPA to recognize nuclear power as clean energy Both passed legislature

Workers’ Comp Claims Settlement Enables self-insured entities (like APS) to enter into “full and final” settlement agreements Allows more options and flexibility to APS in settlement negotiations.  Passed the legislature and signed into law

Oversize Commercial Vehicles Legislation requiring local transportation rules to be substantially identical to ADOT rules Simplifies duplicative and inconsistent rules affecting motor fleets (such as APS’s) Passed the legislature and signed into law

Ballot Measure Reform Legislation banning the practice of paying signature gatherers per signature Legislation requiring statewide initiative measures adhere to “strict compliance” with all constitutional and statutory requirements Both passed and signed into law

APS-Opposed Legislation

Clean Power Plan Legislation Bill to create an Arizona Clean Power Plan All AZ electric utilities, including APS, Opposed Failed to pass House Energy Committee

Construction Contracts; Indemnity Legislation would have made it unlawful for indemnity clauses in contracts to transfer risk to contractors This would have limited APS’s ability to negotiate construction contracts and allocate insurance risk The bill failed to receive a legislative hearing

Municipal Tax Auditors Would have allowed third-party private auditing companies to access APS’s confidential tax info Failed to pass House Rules Committee

Other APS-Related Legislative Activity

Wireless Facilities and ROW’s Legislation allows streamlined and enhanced access to rights-of-way for wireless providers (Verizon, AT&T, etc.) APS worked with the wireless providers to include an amendment that protects existing electric utility infrastructure in rights-of-way Passed legislature and signed into law

Solar Panel Disposal & Recycling Senate Energy Committee investigatory hearings Utilities, solar companies, and the Department of Environmental Quality participated Legislation this year to create study committee Senate and House Energy committees opted for more informal hearings on the subject in lieu of statutory committee

APS Legislative Presentations Veteran’s Caucus Latino Caucus House Democratic Caucus House Energy Committee