PHOENIX - A veteran state lawmaker is proposing creation of government-run "energy parks'' designed to facilitate construction of new solar, wind - and especially nuclear - power plants in Arizona.

  HB 2090, set for debate today in the House Ways and Means Committee, would give certain financial advantages to power plants that would locate in special districts that the Arizona Energy Park Authority would have the power to create.

  Most notably, it would allow the owners of these facilities to, in essence, divert some of what they would otherwise pay in local property taxes to instead pay off investors.

  The authority also would have the power to condemn private property to create one or more of power parks where solar, wind or nuclear plants would be located.

  Rep. Warde Nichols, R-Gilbert, insisted that would not necessarily force residents of nearby communities to accept unwanted neighbors, saying there would be a locally elected board to make those decisions.

  His bill, though, currently contains no such provision for any locally
elected groups, instead giving the sole power to site these parks - and decide what goes there - to a board that would consist mainly of people named by the governor.

  Nichols acknowledged there are some questions about the legislation that he cannot answer. And he declined to say which private companies helped to actually craft the measure.

  But Nichols said he believes Arizona needs new nuclear power plants both to create jobs and ensure there is enough electricity for the state's future.

  "When that sun quits shining, the wind quits blowing, people still want their air conditionings to turn on,'' he said. "People still want their computers to turn on at nighttime.''

  The legislation is getting a cold shoulder from the state's largest utility. Marty Shultz of Arizona Public Service said investor-owned utilities are doing just fine in planning for the state's energy future.

  Beyond that, Shultz wants to know why companies that would locate in these power "parks'' - companies that could be competitors - would get special property tax breaks.

  Shultz also noted that Nichols' legislation even would let this new agency build and operate power plants in competition with private companies. But Nichols said his intent is to have privately run power plants, albeit with substantial tax breaks.

  Arizona currently has no state property tax, with lawmakers debating whether to permanently repeal the levy that was suspended three years ago.

  But expensive power plants do contribute heavily to local governments and school districts. One result, said Nichols, was the ability of the Round Valley High School to build a domed football stadium from tax revenues from the nearby Springerville coal-fired power plant.

  Nichols said HB 2090 would "recapture'' some of the funds that otherwise would go to local governments and school districts, allowing the authority to instead use it to repay those who invested in the power plants.

  The amount of money involved could be substantial: Shultz said APS currently pays close to $100 million a year in taxes just on the Palo Verde Nuclear Generating Station west of Phoenix, currently the state's only nuclear plant.

  Nichols said the special tax break is justified.

  "There's a lot of front money needed to build these things, a lot of money,'' he said. "And it takes some very special circumstances for investors to come in and say 'I'm willing to put my money out for five or 10 years before I ever see a return on my investment.'''

  Shultz, however, said APS - and other utilities - are planning for Arizona's future power needs under existing laws. He said APS just filed plans with the Arizona Corporation Commission for new power plants, including nuclear, to take care of the energy needs of its customers through 2025.

  Nichols, however, said the state needs to do more to attract other companies that want to build power plants.

  "It's the responsibility and purview of government to put out the welcome mat to say, 'We want your type of businesses here in Arizona,'" he said, to the point of having the state create a mechanism "that would give you that opportunity to go out and attract the investors, attract the capital that you're going to need to come build these things.''