Arizona ' super world's largest solar plant awaits federal funding

The spokesman for Arizona Public Service was hoping that the sunshine of his answers would peek through the dark clouds of my questions.

"I'm still optimistic," Jim McDonald said.

Hey, I'm just the weatherman. It wasn't me who rained on what the president of APS called  
"the dawn of the Solar Age in Arizona."  

It was the United States Senate.

Earlier this year, with much fanfare and media coverage, APS announced plans to partner with a Spanish company that would build one of the world's largest solar-power plants, near Gila Bend. The facility, called Solana, would cover 3 square miles, cost about a billon dollars and generate 280 megawatts, enough to power at least 70,000 households.

"This is a turning point for APS and the future of the state of Arizona as we move to become the solar capital of the world," APS President Don Brandt said at the time.

Before that could happen, however, Abengoa Solar Inc., a Spanish technology company, would have to get financing. And that would happen only if the Senate extended a federal tax credit for these types of projects.

Late last month, the Senate failed to pass legislation that would have extended the credit. It was contained in a bill that included hundreds of other provisions, including a child tax credit, college-tuition tax credits and more.

Republicans and Democrats bickered over details. The vote fell mostly along party lines, with Republicans opposing it. Sen. John McCain didn't vote. (The New York Times' Thomas Friedman pointed out that it was the eighth time in the past year that McCain has skipped a vote on this proposal). Sen. Jon Kyl voted against it.

"Obviously that legislation is important to APS and Solana and the whole solar industry, there is no doubt about that," McDonald said. "But we remain optimistic that the legislation will pass this year. I don't want to predict when it will get done, but I've seen a lot of things get done between the elections and the end of the year."

If built, the solar plant is expected to store heat collected from the sun in order to generate electricity for as long as six hours after the sun sets, a peak time here in the desert. Still, I asked McDonald, why there should be any special tax credits offered for such an enterprise.

"Every emerging technology has had support from the federal government at some point along the way," he said. "This is no different. And the fact is, the societal benefits of renewable energy, not just solar, are so important. And it makes business sense in balancing our system. . . . As a company, we're not just supporting renewable for the sake of supporting renewables. It's important to have a balanced energy portfolio that includes nuclear as well as the use of clean fossil fuels. Renewables make business sense."

It's not like other energy companies - Big Oil, for instance - don't get considerable tax breaks from the government.

Still, McDonald understands that getting anything through Congress is complicated, and he doesn't want to point fingers or irritate any politicians. And why should he? That's my job.

I could suggest, for example, that promoting new drilling for oil while stalling on the exploration of alternative energy sources is hypocritical and potentially dangerous.

But rather than close on such a gloomy note, perhaps it would be better to consider the possibility of bipartisan sunshine breaking through the clouds and end our story with a more rainbow-like comment.

"Now is the time for Congress to act," McDonald told me. "There is no question that now is the time. New energy sources are essential to all of us."