WEEK 13 - Planning For Sustainability

http://www.tucsoncitizen.com/ss/related/111757

Other states eclipse Arizona's efforts to lure solar industry

This article discusses the state initiatives taken to entice solar companies to locate in their states. Located in the Sonoran Desert, Arizona has an opportunity to capitalize on their natural habitat including large amounts of sunlight. As Wheeler states, “For the purposes of sustainability planning, state or provincial governments often have key roles to play in overseeing land use planning, transportation systems, environmental protection, equity and the formation of municipal governments” (Wheeler, 125). State governments play a very important role in implementation of initiatives which aid the greater picture of sustainability. For example, the Renewable Portfolio Standards (RPS) that have been initiated in 24 states, are renewable energy goals set for states. Arizona has an RPS goal of 15% by the year 2025. Yet, Arizona has lost to the competition of other states in the battle to gain solar manufacturers. Most competition for the solar industry comes from other western states. Some of which have used tax incentives to lure the solar industry base to their state. “Oregon, for instance, offers a 50 percent tax credit to pay construction costs for renewable-energy equipment manufacturers. Development officials say it has helped them land seven international solar manufacturers in two years. Most of those companies had considered coming to Arizona.” In addition, New Mexico has provided tax benefits in addition to reimbursement for job training, and aid in infrastructure needs. "When I was in Phoenix, we didn't consider New Mexico competition," said Jim Colson, a former economic-development official for New Mexico, Glendale and the Greater Phoenix Economic Council. "That has shifted. Now, New Mexico doesn't consider Phoenix competition."

Phoenix has until now relied on climate and population growth to drive industry. Yet, their lack of incentives and high property taxes has veered renewable energy companies away from Arizona. Sen. Barbara Leff, from Paradise Valley mentions, "If you're a company and you are trying to decide what state to move to, and some states are embracing you with open arms and you've got Arizona saying, 'We are not doing anything,' which one are you going to pick?"

Due to the new administration making steps to engage the environmental realm with the economic stimulus package has brought the alternative energy industries to a new arena. Yet, some companies tend to locate near their industry hubs. Arizona, needs to make a hard and steady attempt to become one of the hubs, or we may lose out on these high-paying manufacturing jobs. The Senate Bill 1403, is currently in the Arizona Senate seeks to bring incentives to solar companies to locate in Arizona. This includes “a 10% income-tax credit on capital investment which would be paid out over 5 years”. The incentives are no where close to as striking as the Oregon Tax Credits. Yet, it also looks at the workers benefits. The company must pay 80% of premiums and provide health care coverage to its employees. In addition, a majority of jobs must pay 25 percent more than the median wage in the state.

Peter Green, president and chief executive of Advent Solar in Albuquerque and a former executive with ON Semiconductor in Phoenix, does not seem optimistic. He agrees that even if the tax-incentives bill passes, the state lacks the strong political backing, the money for sweeteners such as infrastructure improvements, and the word-of-mouth industry buzz that help foster a solar industry.

The issue of increased solar energy consumption and thus a larger solar industry job force can be addressed at both a federal and city level. The federal level could create a national mandate of increased solar consumption. However, at the State level, as Wheeler mentions “certain relatively progressive states, or states with particularly serious problems, can at times go much further than a national government in developing policy and programs” (125) The city level could also create policies and programs for the energy crisis. In the case of solar energy, a municipality may have better luck at gaining residents’ support for environmental stewardship in the form of renewable energy sources. Efforts such as creating environmental organizations and groups at the city level will gain both knowledge and enthusiasm for solar projects. Although municipalities have the opportunity to create policies and programs more generally cater towards their communities’ circumstances, State policies and programs can affect a larger amount of people.

I believe that in this case, the State level is has a better chance of having a larger effect on the increase of renewable energy. The city level can only do so much, but the state level can aid in luring multiple renewable energy companies to the state. This would in turn, aid in economic restructuring and a new possible vision of the state. Although the State governments should create the framework for the future of renewable energy, the local level should work pro-actively to connect and add to the policies and programs set out by the state. With this in mind, the State level should build the framework while the local level can add programs to support the framework. Once again, education at the local level can gain support and enthusiasm for topics such as renewable energy sources.