HB 2258 Summary: Solar School Grant Program

• Establishes a state solar grants program fund administered by the Department of Education to provide grants to school districts for solar education programs and demonstration projects in schools using solar technology.

• Requires school district governing boards to adopt policies for installing solar technology in schools, maintaining solar school funds from net metering revenues, and prioritizing installation in new facilities first, then existing facilities starting with smaller schools.

• Imposes a new electricity consumption tax of 0.05 cents per kilowatt hour for residential customers and 0.07 cents per kilowatt hour for commercial, industrial, and other customers, effective January 1, 2013, with revenues deposited into the solar school grant program fund.

• Exempts electricity generated from renewable sources from the consumption tax and allows the Arizona Commerce Authority to disburse fund monies starting March 1, 2014, with up to 1% or $250,000 (whichever is less) going to the Department of Education for solar education grants and the remainder distributed to school districts on a per-pupil basis.

• Terminates the electricity tax and program when the State Board of Education notifies the Arizona Commerce Authority that all schools in all school districts have converted to solar technology.