Southwest Energy Efficiency Project

State Policies and Programs

Arizona Department of Commerce

The Arizona Department of Commerce’s Energy Office provides energy efficiency programs for businesses, communities and homeowners in Arizona.

Rebuild Arizona offers commercial building and multi-family housing owners and managers information and technical assistance for energy efficiency improvements to existing buildings. The program strives to reduce energy consumption by 25%. Arizona State University and Arizona Public Service Company are active partners in the program and a variety of other public and private entities and utilities are key members. Established in 1998, the program has assisted with a large number of audits and large-scale lighting replacement projects with Northern Arizona University, Arizona State University and the University of Arizona. Program officials report that several energy savings performance contracts are underway in the public and private sectors. The program is currently splitting the costs of an energy engineer with the School Facilities Board to perform plan reviews for new buildings and energy efficiency improvements to existing buildings. For more information about Rebuild Arizona, view its brochure and details on the Rebuild America website

The Energy Office’s Municipal Energy Management Program encourages the development and utilization of energy management plans in municipalities with populations under 70,000 and offers a limited number of $10,000 matching grants for energy efficiency projects. Six to nine municipalities work with the program each year to identify improvements based on life-cycle cost calculations. Typical energy efficiency improvements are more efficient pumps for water and wastewater treatment, LED traffic light installations, and lighting retrofits in public buildings.

The weatherization program for low-income homeowners helps individuals and families who qualify to lower their utility bills by adding thermal insulation to the residential building envelope, reducing air leakage, tuning up heating and cooling equipment, among other things. Since the program began in 1977, more than 25,000 homes have been weatherized.

Energy Efficiency in State Buildings

A May 2001 Executive Order directed state agencies and employees to implement energy conservation measures in state facilities. Their efforts reduced energy costs $130,000 for the state and taxpayers during the summer of 2001 alone. State agencies and employees are instructed to take steps to lower the state’s energy usage during summer peak electricity use, including:

Turning off office lights and all office equipment when not in use for more than one hour.
Using Energy Star or other computer terminal power management tools that put the computers and monitors in “stand-by mode” when not in use.
Raising thermostats two degrees from June – September in all state facilities

State income tax deduction for energy-efficient new homes

Effective in January 2002, Arizona home sellers can subtract five percent (up to $5,000) of the sales price of a single family home or condominium that is 50% more efficient than the 1995 Model Energy Code (MEC) from their income for the purpose of calculating their state income tax. The income tax deduction is available through 2010.

A home’s energy efficiency must be demonstrated by a score of at least 90 points (indicating that the home is 50% better than the MEC threshold) on a home energy rating. The Department of Commerce’s Energy Office will adjust the eligibility criteria if the number of residences that qualify is larger than 5% of the total number of residences sold.

Arizona Coalition for New Energy Technologies

The Arizona Coalition for New Energy Technologies is a business coalition that promotes its members' innovative technologies through outreach programs, policy advocacy and various other activities. The coalition works cooperatively with a broad range of industry organizations and stakeholder communities to advance clean and efficient energy technologies that enhance the region's environment and economy - and our national energy security.

© 2002-2008 Southwest Energy Efficiency Project
2260 Baseline Rd. Suite 212, Boulder, CO 80302
(303) 447-0078 fax: (303) 786-8054 info@swenergy.org

Last Updated: 01/28/2008