PHOENIX — A bill advancing through the Arizona Legislature would potentially tax entities that are producing solar power in Arizona and then exporting the energy for other states to utilize.
Senate Bill 1066 would establish royalty funds for Arizona counties that have large solar farms producing and exporting energy out of the state.
State Sen. Sonny Borrelli, R-District 30, said the legislation is modeled after states like Alaska which distributes royalty checks to residents based on the state's revenues from oil production.
"If you're going to come to Arizona and exploit the land, take advantage of our sun -- and the citizens don't benefit from that at all -- that's not fair," Borrelli said during a recent Senate committee hearing.
If signed into law, the bill would require solar developers to pay 12.5% of every $1 received in revenues from the sale of kilowatt-hours from their solar panels. Funds collected from the tax would be equally distributed among the residents living in the county where the solar panels are stationed.
The bill passed out of the Senate Natural Resources, Energy, and Water Committee on Thursday by a 4-2 vote.
Opponents of the bill argued that SB 1066 appears to be "discriminatory" in how it targets one specific type of energy production in Arizona.
Rooftop solar panels and solar energy produced by public corporations regulated under the Arizona Corporation Commission would be exempt from the bill's regulations.
More info on SB 1066 can be found below:
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