June 22, 2009
Arizona has the opportunity to become new solar leader
By Mayor Boyd W. Dunn
You may have already read the numbers, but here they are again: By 2016, it is projected that solar-related investments in the U.S. economy will increase by $232 billion dollars creating more than 275,000 jobs. It is encouraging news for the country, but it comes with a bit of frustration here in Arizona. That is because Arizona currently ranks seventh out of the seven Mountain West states in attracting solar-related manufacturing.
As the President of the League of Arizona Cities and Towns, I understand fully the complex challenges the municipalities of this state are dealing with during this fiscal crisis. But attracting investment dollars and sustainable jobs to our borders does not have to be among them.
We need to take immediate action. A bill currently in the Arizona Legislature (Senate Bill 1403) would provide the state – and its cities and towns -- the inducement needed to aggressively attract solar manufacturing investments. With the proper legislation in place, we can take advantage of the high-wage job creation opportunities that lie within solar manufacturing, development and even headquarter operations. These are the projects we are losing to the more proactive states of Oregon, New Mexico and Texas.
It is estimated that Arizona has already lost out on potential projects that have delivered more than 5,000 jobs to states that have incentive programs. More high-caliber projects are in the pipeline now, but without a competitive incentive program, the challenges to attract them become tenfold.
I have said many times that Arizona’s cities and towns are the driving force behind the state’s long-term economic success. We have a cooperative yet competitive process in place that allows us to attract top-flight companies. What we lack is the ability to compete on a level playing field without the incentives SB 1403 could provide.
Based on Arizona’s manufacturing history, we are in a position to lead the solar manufacturing industry – an opportunity not seen since the on-set of the semiconductor industry, due to a well designed, industrial infrastructure that includes a sophisticated water management system, ready access to a nitrogen line and redundant power. Add an inventory of specialized buildings, a skilled workforce and a solid reputation among cutting-edge, high-tech companies.
The entire state will prosper with the passage of SB 1403 for several reasons. California is the world’s eighth largest economy and is expected to be the largest renewable energy market is the world. Our economies are uniquely linked. The development of the solar industry and the opportunity to provide solar equipment for California is one of many ways we can leverage Arizona’s proximity to our neighbor to the west. And, Arizona will be a large consumer (i.e. home and commercial panels) and distributor of solar energy. Finally, greater Phoenix is the No. 2 market for semiconductor workforce talent, a transferable skill set to solar manufacturing.
Arizona and its cities and towns are facing extraordinary tests to remain fiscally solvent. An opportunity to invest in the solar industry is one we cannot afford to ignore. I hope our elected leaders at the Legislature will share this vision and allow Arizona to become the new leader in solar technology. |