Legislation in AZ could weaken state’s solar industry

Legislation that’s winding its way through Arizona’s legislative chambers, HB 2789, could imperil that state’s solar industry growth. The current legislation, which could be voted on in the state Senate as early as March 21, would cap the amount of renewable energy at 25 percent in the state, taking regulatory power from the Arizona Corporation Commission.

If passed the legislation, introduced by state Rep. Debbie Lesko (R-Phoenix), could result in a loss of jobs and stymie the industry, according to Michael, executive director of the Arizona Solar Energy Industries Association.

The legislation, which was likely supported by libertarian think tank Goldwater Institute, is the strongest affront to the spread of solar in Arizona in years and would result in more regulation.

While the legislation as currently proposed would only limit the state’s renewable energy goals to what’s already been passed, it could have bigger impact, according to Neary.

“This legislation sends a bad message to investors looking to invest in Arizona,” he said. “Regulatory certainty is something companies want when they choose to enter the market. If they don’t have it they’re going to doubt coming into the market.”

And the state is trying to attract such companies and the jobs they’ll bring.

“This is the most damaging [piece of legislation] at this point,” Neary said. “We have had other bills in the past that would have been more damaging, but we have prevented them from getting any traction.”

It’s not the first time the legislation has been introduced.

Former versions of it were deemed anti-constitutional because the Corporate Commission would have been required to have any changes in renewable energy policy approved by the governor, report any proposed changes to the legislature, according to Neary.

If it is passed by the legislature, there’s also a very good possibility that it still could be deemed anti-constitutional because it interferes with the commission’s purpose.

But Neary doesn’t know whether the legislation will pass or not.

“It probably has a fairly decent chance of passing our legislature,” he said.

Whether or not Gov. Jan Brewer (R) will sign the legislation into law is another question.

She has touted the jobs that solar has brought into the state.