Humanity continues to power forward on the road to an alternative future. Forbes magazine predicts that by 2030, approximately $90 trillion will be invested worldwide in infrastructure for cities, land use and energy -- with an emphasis on a shift to a low-carbon economy.
As part of this trend, the State of Arizona is in the beginning stages of developing a plan to reduce the carbon emissions from our state’s electric generating facilities by more than 50 percent by 2030. The plan, in response to the draft Clean Power Plan rule under section 111(d) of the U.S. Clean Air Act, will outline how to achieve significant carbon reduction by turning to cleaner resources.
But, the state can do more than just write a plan. State and local units of government, can, and should, lead by example. During the past four years public agencies statewide invested more than $100 million of federal stimulus money to incorporate solar into our public buildings, and to make public facilities more energy efficient.
More than 220 Arizona schools now have rooftop solar systems. Forty-percent of these installations occurred as a result of federal stimulus funds that invested in public infrastructure projects during the Great Recession.
These solar installations are saving Arizona taxpayers, and our schools, more than $12 million dollars annually, and have reduced carbon emissions by more than 60,000 tons each year. They are community assets that should be celebrated and showcased. However, few people know of their contributions.
And, schools aren’t the only political subdivision embracing solar.
The town of Chino Valley used stimulus funds to install a 60 kilowatt (kW) ground-mounted photovoltaic (PV) system at its water reclamation center. The project saves nearly $12,000 a year in energy costs, and reduces carbon emissions by 60 tons a year.
Fredonia installed solar at its water plant, too.
Stimulus funds allowed Cottonwood to install a 10 kW roof-mounted PV system at its city complex. The system is reducing carbon emission by almost 10 tons a year.
Clifton used its stimulus funds to install a 10 kW PV system to service residents and businesses within the community. El Mirage also implemented solar with the help of a federal stimulus grant.
Federal stimulus funds allowed Nogales and San Luis to install 30 kW PV systems at a public works facility and city cultural center, respectively. More than 60 tons of carbon pollution is eliminated annually as a result, while saving each community more than $6000 a year in energy costs.
Superior, Thatcher, and Tolleson also put federal stimulus dollars into PV systems for local government buildings, a water distribution facility, and a police building – resulting in energy cost savings and cleaner air.
Other examples include renewable energy technologies deployed by the City of Clarkdale at its town hall, a 20 kW PV system at the Wickenburg municipal airport, and a solar hot water heating system at the Gila County jail.
These are just a few of the real-world examples in Arizona that reflect the priorities of our communities. Although the stimulus was a one-time source of funds, the public sector can still do more to reduce energy costs, while helping to clean the air.
Arizona State University has pioneered a financing mechanism to procure solar at no upfront cost to taxpayers. The Power Purchase Agreement (PPA) diverts energy payments from the traditional utility provider to a solar provider. Using this type of financing alternative, ASU generates a third of its electricity on-site from solar. It is a procurement method that can be replicated by public entities throughout the state in an effort to reduce energy costs and carbon emissions.
As we look for solutions to achieve the goals proposed by the 111(d) draft rules, we need to consider alternatives to simply assigning the costs to the utilities and their ratepayers. Using the PPA model, the public sector can be part of the solution. Although solar market penetration in the public sector has not been well-documented, it is safe to say that only a fraction of the potential has been realized to date.
The same is true for energy efficiency.
Through the use of energy savings performance contracts, public entities can leverage private sector investments to modernize facilities, reduce energy consumption, cut waste and save taxpayers’ dollars. What’s more, energy efficiency retrofit projects will not only reduce carbon emissions, but they will create jobs in every community in the state. And, like the innovative PPA financing model for solar, energy efficiency retrofits can be implemented with no upfront cost to our public institutions.
The private sector is ready and willing to pay for energy efficiency retrofits, guarantee the savings, and accept repayment over time equivalent to the energy cost savings.
More than 10 percent of our carbon emission reduction target under the proposed 111(d) rule, can be meet through public facility retrofits -- at no additional out-of-pocket cost to taxpayers or ratepayers. We can use the savings to pay for these clean energy solutions to our carbon problems.
Jim Arwood
Communications Director
Arizona Solar Center
Question: Should our public bodies adopt targets/goals for their own solar generation and energy efficiency requirements?
