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 ' ------- 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 ------- |