Southern Arizona lawmaker praises provisions in economic recovery legislation but says more needs to be done
WASHINGTON - U.S. Rep. Gabrielle Giffords is urging congressional leaders to adopt economic stimulus measures aimed at advancing large-scale solar energy projects like Arizona's proposed Solana plant.
Giffords, a member of the House Science and Technology Committee, called the solar energy provisions in the American Recovery and Reinvestment Act a good first step toward improving access to clean, affordable energy. But she said more needs to be done to harness the power of the sun.
The American Recovery and Reinvestment Act was passed by the House on Wednesday, January 28 in a 244 to 188 vote.
"Solar power represents one of our nation's best hopes for a clean, secure and sustainable energy future," Giffords wrote in a letter to Republican and Democratic leaders in the House and Senate. "A strong solar power industry creates good jobs and economic growth, increases American energy independence, and reduces the threat of climate change."
Giffords urged congressional leaders to adopt an incentive program that recognizes the multi-year development process for large-scale solar projects. Such a program, she wrote, would help realize President Barack Obama's national goal of doubling our renewable power capacity by 2012.
Among the recipients of an eight-year extension of tax credits passed by Congress in October is Arizona Public Service, which has proposed building the largest solar plant in the world 70 miles southwest of Phoenix. The $1 billion plant would provide power to about 70,000 homes but it will not be built without modifications to federal incentives.
As Giffords wrote to congressional leaders, the economic downturn has prevented the existing solar investment tax credit incentive from achieving its intended goal. "Many entities that would like to invest in solar facilities - and other renewable energy projects as well - do not have taxable income, so the tax credits provide them with no incentive," she wrote.
The House-passed economic stimulus package attempts to address this situation by creating a grant program in lieu of tax credits. However, as currently drafted, the program would apply only to projects placed in service before the end of 2010.
"Large-scale renewable energy projects have a development cycle of three to five years," Giffords continued "Most proposed large projects cannot be completed (before the end of 2010), so the grants program would still offer them no incentive."
Giffords suggested a change to the grant program that would make projects eligible for grants based on when construction starts, rather than when the project is placed in service. Noting that Congress has already agreed that a federal incentive is critical for the solar energy industry, Giffords said her proposed revision "would make sure people have access to the incentive we intended."
Prior to Wednesday's vote on the American Recovery and Reinvestment Act, Giffords praised the bill on the floor of the House because it includes significant funding for research and development in advanced energy technologies, such as transmission and energy storage. A fully supported solar industry, she said, has the potential to create almost 40,000 jobs and $8 billion in investments.
"This is exactly the kind of bold action our economy needs," Giffords said.
Click here for a copy of Giffords' letter to congressional leaders, and click here for a summary of solar legislation she has introduced so far in the 111th Congress.