House Approves Incentives to Build Renewable Power Plants

(State Capitol, Phoenix) The House approved a tax incentive measure last week to encourage renewable energy producers to construct "green" power plants in Arizona. Shepherded by Rep. Lucy Mason, R-Prescott, HB2614 extends an existing property tax valuation method that greatly reduces the taxes on solar and other renewable energy equipment. Taxes would increase in 2011 without the extension. The bill extends that tax method to 2040. "Under this bill, energy producers would have greater assurances that they can afford to build Ëœgreen' electricity generation plants in Arizona," Mason, chairwoman of the House Water and Agriculture Committee, said. "I am focused this year on making Arizona less dependent on volatile foreign energy markets and more open to renewable, sustainable technologies and conservation practice." The state's leading energy producers hailed the legislation. "From companies that build renewable energy plants to businesses that invest in solar energy to power buildings and facilities; this will have a positive impact on the future of renewable energy in Arizona," said Richard Hayslip, Salt River Project Associate General Manager. "Extending the time period for this incentive will encourage more companies to invest in renewable energy in Arizona and drive down the cost of investing in this technology." The bill encourages companies like Arizona Public Service to build more solar power plants, including one of the world's largest plants it is building near Gila Bend. "Our decision at APS to build the new Solana solar plant was as important as the company's decision in 1973 to build the Palo Verde nuclear plant. Solana will be the largest and most modern solar generating station in the United States," said APS CEO Donald E. Brandt. "We encourage our lawmakers at the state Capitol and in Washington, D.C., to pass legislation such as HB2614 that makes a long-term commitment to the development of solar energy possible." The bill passed with bipartisan support and heads to the Senate for consideration. "Arizona is on the global map with energy industry leaders wanting to locate here," Mason said. "HB2614 issues that invitation."