Assessing The Potential For Renewable Energy On Public Lands

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Assessing the Potential for Renewable Energy on Public Lands This appendix provides most of the state policies and financial incentives considered applicable to the development of renewable power production facilities on BLM lands. Some policies were omitted (e.g., residential solar tax credits) as not being directly applicable to this assessment. After October 2002, readers are encouraged to consult the Database of State Incentives for Renewable Energy (www.dsireusa.org) for the most current state policies and incentives. Arizona (Highly Favorable) Green Pricing Programs • APS - Solar Partners • SRP - EarthWise Energy • Tucson Electric Power - GreenWatts Green Power Aggregation Scottsdale – Green Power Purchasing Generation Disclosure The Arizona Corporation Commission adopted disclosure provisions as part of its 1996 Retail Electric Competition Rules. Under the disclosure provisions, all retail suppliers of electricity must disclose composition, fuel mix, and emissions characteristics upon request. Net Metering The original Arizona Corporation Commission regulatory decision allowing net metering was made on July 27, 1981. This ruling allows net metering for qualifying facilities (QF) as defined by PURPA. This ruling applies to QFs of 10 kW or less for Arizona Public Service or 100 kW or less for Tucson Electric Power. Renewables Portfolio Standard Arizona’s Environmental Portfolio Standard (EPS) was formally approved by the Arizona Corporation Commission (ACC) in May 2000, and it became operational on March 30, 2001. Under the standard, regulated utilities in the state are required to provide a certain percentage of their electricity from renewable energy. The standard begins with 0.2% renewables for 2001 and increases to 1.1%. California (Highly Favorable) Solar and Wind Energy Tax Credit California Governor Gray Davis approved SB 17 on October 8, 2001. The law provides income tax credits for the purchase and installation of solar energy systems. Solar energy systems are defined as photovoltaic or wind-driven systems with a peak generating capacity of up to, but not more than, 200 kW. The credit is equal to 15% of the cost of a system installed after January 1, 2001, and before January 1, 2004, or $4.50 per rated watt of the system, whichever is less. After January 1, 2004, and before January 1, 2006, a credit of 7.5% of the cost of an installed solar energy system will be available. If an installed system is removed from the state within one year, the credit must be repaid to the state. F2

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