Updated: April 26, 2014:
The Arizona Legislature adjourned on Thursday, April 24 at 1:42 am -- bringing an end to the 51st legislature – second session. Of the bills the Az Solar Center was tracking – SB 1484 was signed into law by the Governor earlier this month. Two other bills, SB 1301 and HB 2403, passed the legislature and have been transmitted to the Governor for her signature.
- SB 1301: Tax Correction
Sponsor: Sen. Yarbrough (R-Chandler)
Status: Passed as amended. Rep J.D. Mesnard (R-Chandler) amendment passed to strike language related to rooftop solar from the bill.
See more at: http://roselawgroupreporter.com/2014/04/rooftop-solar-dodges-bullet-legislature-closes/#sthash.BZmVgqZh.dpuf
- HB 2403: Strike All Amendment to H.B. 2403, relating to valuation; tax; renewable energy equipment is on the calendar for the Senate Committee of the Whole for April 21, 2014
Purpose: Specifies procedure relating to the full cash value and depreciation of renewable energy equipment.
Background: The Department of Revenue (DOR) determines valuation of centrally assessed property. Centrally assessed property in Arizona includes mines, railroads, private car companies, electric, gas, and water utilities, pipelines, airlines and telecommunications providers that are located in more than one county.
Current statute defines renewable energy equipment as electric generation facilities, electric transmission, electric distribution, gas distribution or combination gas and electric transmission and distribution and transmission and distribution cooperative property that is used or useful for the generation, storage, transmission or distribution of electric power, energy or fuel derived from solar, wind or other nonpetroleum renewable sources not intended for self-consumption.
The centrally assessed value of renewable energy equipment is statutorily set at twenty percent of the depreciated cost of the equipment. Depreciation is an annual allowance for the wear and tear, deterioration or obsolescence of property. The value of a depreciated property is arrived at by subtracting the acquisition cost of that property from the appropriate depreciation for that property as prescribed by DOR. The depreciated value may not be lower than fair market rate for the property.
The fiscal impact to the state General fund associated with this legislation is unknown.
Provisions
1. Stipulates depreciated cost for renewable energy equipment must be calculated by subtracting the depreciated value from the taxable original cost.
2. Defines the following:
a) depreciation means a straight line depreciation of value, as defined by DOR, over the useful life of equipment, and prohibits depreciation exceeding 90 percent of the adjusted original costs;
b) original cost means the actual cost, without trending, of the acquisition or construction of property. Acquisition or construction includes additions, retirements, adjustments and transfers of property; and
c) taxable original cost means the original cost of the renewable energy equipment minus the value of applicable investment and production tax credits or cash grants.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date. - SB 1484: tax credit, manufacturers; renewable energy
Senators Worsley, Pierce: McComish (with permission of Committee on Rules)
Status (Updated 4/18/14): Signed into law by Governor Jan Brewer 4/11/2014.
Description: Creates individual and corporate tax credits for investment in new renewable energy facilities that produce energy primarily for manufacturing. The amount of the credit is capped at $2 million per facility per calendar year, with the aggregate amount of credit capped at $20 million per calendar year. To be eligible for the credit, the taxpayer must invest at least $300 million in new renewable energy facilities in Arizona that produce energy for self-consumption using renewable energy resources; at least 90 percent of the energy produced at each renewable energy facility is used for self-consumption in Arizona; and the power is used primarily for manufacturing.
www.azleg.gov/legtext/51leg/2r/bills/sb1484p.pdf - SB 1227: limits energy efficiency regulations
Sponsored by Sen. Crandell.
Status (Updated 3/29/14): Had its third reading in the Senate on March 4, 2014. No further action has occurred since 3/4/14.
Description: Prohibits municipalities and counties from certain actions relating to energy efficiency, energy conservation or green construction regulations in new construction.
Amendment: The Crandell Floor Amendment exempts any, or part of any, ordinance that solely regulates outdoor lighting from the mandated energy efficiency or conservation prohibition.
Provisions:
1. Prohibits cities, towns and counties from the following actions related to energy efficiency, energy conservation or green construction in new construction:
a) adopting any mandatory building codes, ordinances, stipulations or other legal requirements; and
b) denying licenses or building permits, or imposing any fines, penalties or other requirements for non-compliance.
2. Exempts any building code, ordinance, stipulation or other legal requirement related to energy efficiency, energy conservation or green construction in new construction that was adopted and effective prior to this act's effective date or any ordinance that solely regulates outdoor lighting.
3. Defines building code.
4. Becomes effective on the general effective date.
http://www.azleg.gov//FormatDocument.asp?inDoc=/legtext/51leg/2r/bills/sb1227s.htm&Session_ID=112 - HB 2553: political subdivisions; energy incentives; prohibition
Sponsored by Rep. Allen
Status (Updated 3/29/14): Had its second reading in the House on February 6, 2014. No further action has occurred since 2/6/14.
Description: Prohibits the state and any county, city, school district or other political subdivision from claiming or accepting any incentive or subsidy from an incentive program offered by a public utility. Restricts any third-party vendor or contractor from accepting any incentive on behalf of the government entity.
www.azleg.gov/legtext/51leg/2r/bills/hb2553p.pdf
- HB 2358: tax; valuation; renewal energy equipment
Sponsored by Rep. Fann
Status (Updated 3/29/14): Last action occurred on 2/10/14 in the House Energy, Environment and Natural Resources Committee. No further action has occurred since 2/10/14
Description: Outlines the method for determining the full cash value of renewable energy equipment and the full cash value of land on which the equipment is located.
www.azleg.gov/legtext/51leg/2r/bills/hb2358p.pdf
- HB 2182: electric utilities; renewable energy standards
Sponsored by Rep. Seel
Status (Updated 3/29/14): Had its second reading in the House on January 23, 2014. No further action has occurred since 1/23/14.
Description: Gives the legislature exclusive authority to determine renewable energy policy for Arizona, including targets, mandates, tax credits, incentives and other direct means to determine or encourage the production, distribution and use of renewable energy sources. Does not include setting utility rates. Establishes a renewable energy standards for public and private power entities in this state.
www.azleg.gov/legtext/51leg/2r/bills/hb2182p.pdf
- SB 1030: Solar School Grant Program
Sponsored by Sen. Farley
Status (Updated 3/29/14): Never heard in committee. No action has occurred on this bill since it was assigned to Committees on January 13, 2014.
Description: Transfer funds from the Arizona Commerce Authority to the Department of Education to provide grants to school districts for solar education programs in schools that use solar technology. The solar education programs may include solar open houses and other demonstration projects. School districts may apply to the Department of Education for grants from the fund.
www.azleg.gov/legtext/51leg/2r/bills/sb1030p.pdf
- SB 1402: renewable energy; definition
Primary Sponsor Sen. Melvin
Status (Updated 3/29/14): Passed the Senate on Feb. 27, 2014 (17-13) and transmitted to the House. House first read on March 4, 2014 and assigned to Energy, Environment and Natural Resources and the Rules committees on March 4, 2014. Had its second read in the House on March 5, 2014. No further action since 3/5/14.
Description: Defines energy sources that are considered renewable energy. Defines renewable energy as including: a) solar; b) wind; c) hydroelectric; d) pumped storage; e) flywheel storage; f) hydrogen; g) geothermal; h) biomass and biomass baseload; and i) nuclear energy fueled by recycled uranium fuel rods that include 80 percent or more recycled nuclear fuel or natural thorium reactor resources under development.
www.azleg.gov/legtext/51leg/2r/bills/sb1402s.pdf
- SB 1073: green technology and manufacturing incentives
Introduced by Senators Ableser, Bradley, Farley, Gallardo, Hobbs, Tovar; Representatives Mendez, Sherwood: Senators Meza, Pancrazi
Status (Updated 3/29/14): First and Second Read in the Senate on Jan 15 and 16, 2014 and assigned to committees for action on 1/15/2014. Never heard in committee.
Description: Provides definition and criteria for the owner of a green manufacturing business to qualify for an income tax credit and property reclassification
www.azleg.gov/legtext/51leg/2r/bills/sb1073p.pdf
- HB 2595: tax; renewable energy; on-site consumption
Introduced by Representative Allen
Status (Updated 3/29/14): Held in Committee on February 17, 2014. No further action since 2/17/14.
Description: Specifies that, for the purposes of property valuation, a solar energy device owned by a homeowner, for their own use, adds no value to the property on which it is installed.
www.azleg.gov/legtext/51leg/2r/bills/hb2595p.pdf - SB 1467: Solar energy devices; on-site electricity
Sponsor: Sen. McComish
Status: Stalled in committee
Description: Would clarify state law by stating that leased or third-party owned grid‑tied photovoltaic systems are considered to have no value and to add no value to the real property on which such device or system is installed.
http://www.azleg.gov//FormatDocument.asp?inDoc=/legtext/51leg/2r/bills/sb1467p.htm&Session_ID=112
- HB 2304: prime contracting deduction; waste facility
Introduced by Representative Pratt
Status (Updated 3/29/14): Never heard in Committee. No action since Second Read on January 23, 2014.
Description: Would exempt mixed waste processing facilities from prime contracting transaction privilege tax, if that mixed waste processing facility is located on a municipal landfill and that it is constructed for the purpose of recycling waste or producing renewable energy.
www.azleg.gov/legtext/51leg/2r/bills/hb2304p.pdf
We encourage interested parties to interact with elected officials at the legislature:
- Click here to find what district you are in azredistricting.org/districtlocator/
- Click here for a list of Arizona legislators azleg.gov/MemberRoster.asp
- Then send email, letter, or call, making reference to the bill
An additional source for information on legislative and policy developments in the energy sector is:
Arizona Governor's Energy Office Newsletter
This newsletter is published by the Arizona Governor's Office of Energy Policy and is provided free of charge to the public. It contains verbatim excerpts from international and domestic energy and environment-related publications reviewed by the Education and Community Outreach personnel.
If you would like to review summaries of past legislation, please see our archives:
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