United States
Environmental Protection
Agency
State Incentives for Achieving Clean and Renewable
Energy Development on Contaminated Lands
The development of clean and renewable energy on formerly used land offers many economic and environmental benefits. Combining clean and renewable energy and
contaminated land cleanup incentives can allow investors and communities to create economically viable clean and renewable energy redevelopment projects. This
document provides information about incentives in your state that can be leveraged for clean and renewable energy and development of contaminated land.
Incentives for Clean and Renewable Energy
Tax Incentives (abatements, deductions, credits, etc.)
Arizona Solar and Wind Tax Credit
www.azcommerce.com/BusAsst/lncentives/Solar+Energy+Tax+lncentives
+Program.htm
Encourages the installation and adaptation of solar energy for commercial
or industrial purposes through a tax credit equal to 10% of the installed
cost of the device. The tax credits are limited to $25,000 per building per
year and $50,000 in total credits per company in any year. The total
amount of credits available for the program is $1 million per calendar year.
Tax credit expires on December 31, 2012.
Arizona Solar and Wind Equipment Sales Tax Exemption
www.azsolarcenter.com/benefits/solarsalestax.html
Provides 100% sales tax exemption for solar and wind equipment,
including passive solar space heat, solar water heat, solar space heat,
solar thermal electric, photovoltaic (PV), wind, solar pool heating, and
daylighting. Sales tax exemption expires on December 31,2010.
Arizona Property Tax Assessment for Renewable
Energy Property
www.revenue, state.az. us/
Provides that through December 31,2040, the value of renewable energy
equipment is assessed at 20% of the depreciated cost for determining
property tax.
Arizona Public Service (APS) Solar Partners Incentive Program
www.aps.com/my_community/Solar/eps.html
Offers non-residential customers who install PV and solar hot water
systems the opportunity to sell the credits associated with the energy
generated to APS, including the following incentives:
Install a new PV system and receive an up-front incentive of $2.50 per
installed DC watt. The maximum incentive per customer per year is
$500,000.
Install a new PV system and receive a production-based incentive
(PBI), which includes two 20-year REC purchase agreements, the first
for $0.25 per kWh on a 10-year payment schedule or the second for
$0.18 per kWh on a 20-year payment schedule. Total annual payments
cannot exceed $500,000.
Install a new, large solar water heating system (minimum system size is
5,000 kWh per year estimated energy savings) and receive a PBI for
the thermal energy delivered by a solar water heating system of $0.07
per kWh-equivalent based on metered production. The PBI is for a term
of 10 years or 50% of the total system cost, whichever comes first.
Install a new solar HVAC system (minimum system size is 10 tons of
cooling) and receive a PBI for the thermal energy delivered for cooling
by a solar HVAC system of $0.16 per kWh-equivalent based on
metered production. The PBI is for a term of 10 years or 50% of the
total system cost, whichever comes first.
Net Metering
Arizona Corporation Commission (ACC)
www.azcc.gov
Offers net metering to customers who generate electricity using solar,
wind, hydroelectric, geothermal, biomass, biogas, combined heat and
power (CHP), or fuel cell technologies. No firm kilowatt limit on system
size capacity. Instead, systems must be sized to meet all or part of a
customer's electric load in that the system may not exceed 125% of the
customer's total connected load. If there is no available load data for
the customer, the generating system may not exceed the customer's
electric service drop capacity. In October 2008, the ACC adopted net
metering rules that apply to all investor-owned electric utilities and
cooperative utilities in the state. Utilities must file compliance tariffs by
mid-January 2009, and the ACC must approve these tariffs before they
take effect. The separate net metering program previously developed
by Arizona Public Service will remain in effect until the new tariffs are
approved.
Quick Facts
Public Benefit Fund (PBF)
Renewable Portfolio Standard
15% by 2025
Net Metering
Interconnection Standards
Yes D No 0
Yes 0 No D
Yes 0 No D
Yes 0 No D
Electric Power Industry Generation by
Primary Energy Source (EIA, 2006)
Petroleum-Fired 0.1% Nuclear 23.0%
Natural Gas-Fired 31.5% Hydroelectric 6.5%
Coal-Fired 38.7% Other Renewables 0.1%
Points of Contact
Arizona Solar and Wind Tax Credit
Rebekah Braselton-Demark, rebekahb@azcommerce.com,
(602)771-1100
Arizona Solar and Wind Equipment Sales Tax Exemption
Debby Tewa, deboraht@azcommerce.com, (602) 771-1241
Arizona Property Tax Assessment for Renewable Energy Property
Locy Guin, lguin@azdor.gov, (602) 716-6837
APS Solar Partners Incentive Program
APS Solar Partners Incentive Program Team, dg_interconnect@aps.com,
(602)328-1924
Net Metering, Barbara Keene, bkeene@azcc.gov, (602) 542-0853
Information current as of November 2008; please refer to www.dsireusa.org and the state Web sites
provided, or contact the points of contact identified above for more up to date information.
Arizona Incentives for Clean and Renewable Energy - Page '
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Incentives for Development of Contaminated Land
Funding (grants, loans, bonds, etc.)
Arizona Brownfields Cleanup Revolving Loan Fund
www.azdeq.gov/environ/waste/cleanup/brownfields.htmffloan
Provides low interest rate loans to public and private parties to clean up
brownfields sites in the cities of Tucson and Phoenix that have already
been assessed for hazardous substance contamination.
Arizona Department of Environmental Quality (ADEQ)
Brownfields Targeted Site Assessment Program
www.azdeq.gov/environ/waste/cleanup/brownfields.htmHftarget
Provides financial assistance up to $50,000 per site for environmental
assessment activities. Funding amounts for cleanup grants are available
up to $200,000 and are site specific. The funded activity must be
completed before the grant period ends, typically two years after the award
date.
Limitations on Liability
Prospective Purchaser Agreement (PPA) -
Covenant Not to Sue
www.azdeq.gov/environ/waste/sps/liability.html
Arizona's PPA is a fee-based tool to avoid potential liability through a
written agreement with ADEQ, which provides a written release and
Covenant Not to Sue for any potential Water Quality Assurance Revolving
Fund liability for existing contamination, if certain statutory conditions are
met.
Technical Assistance and Other Incentives
Brownfields Redevelopment Toolbox
www.azdeq.gov/environ/waste/cleanup/download/tool.pdf
Explains the five steps of the brownfields redevelopment process and
provides a summary of available federal, state, and local incentives.
ADEQ Brownfields Assistance Program
www.azdeq.gov/environ/waste/cleanup/brownfields.html
The Arizona Brownfields Assistance Program provides technical
assistance to assess and clean up property where reuse is complicated by
the presence or potential presence of hazardous substances or pollutants.
ADEQ Voluntary Remediation Program (VRP)
www.azdeq.gov/environ/waste/cleanup/vol.html
The VRP is a cost-for-fee mechanism for site owners or operators to
voluntarily address contamination with ADEQ concurrence. The VRP offers
a single point of contact between the participant and all ADEQ programs,
and a closure document upon completion of a remediation to the
appropriate standards. The VRP provides flexibility for participants to set
their own remediation schedule.
Declaration of Environmental Use Restriction (DEUR)
www.azdeq.gov/environ/waste/cleanup/deur.html
Offers a Declaration of Environmental Use Restriction (DEUR), which is a
restrictive covenant that documents institutional and engineering controls
that may be used to allow closure of a site where contamination is still
present. Use of this tool often allows properties to be safely closed in a
shorter timeframe, and at less expense than a full scale cleanup, allowing
the property to be more quickly redeveloped, sold or otherwise put to
productive use earlier.
Quick Facts
Limitations on Liability Yes 0 No D
Number of State-Tracked Contaminated Properties: 101
Includes active sites within the ADEQ Voluntary Remediation and
Brownfields Programs
Number of EPA CERCLIS Sites: 207
Sites identified for potential investigation under the federal Superfund Program
Number of EPA Brownfields Properties: 120
Properties being funded or addressed under the EPA Brownfields Program
There may be some o verlap among the categories listed and sites listed may not
represent all potentially contaminated sites in Arizona.
Points of Contact
Arizona Brownfields Cleanup Revolving Loan Fund, ADEQ
Brownfields Targeted Site Assessment Program, Brownfields
Redevelopment Toolbox, ADEQ Brownfields Assistance Program
Juli Boles, boles.juli@azdeq.gov, (602) 771-4401
VRP, Jennifer Barr, barr.jennifer@azdeq.gov, (602) 771-4809
DEUR, John Patrick!, patricki.john@azdeq.gov, (602) 771-4397
PPA- Covenant Not to Sue,
Ana Vargas, aiv@azdeq.gov, (602) 771-4178
Information current as of November 2008; please refer to
www.epa.gov/brownfields/pubs/st_res_prog_report.htm and the state Web sites provided,
or contact the points of contact identified above for more up to date information.
Arizona Incentives for Development of Contaminated Land - Page 2
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