A new project between Arizona’s largest utility, Arizona Public Service (APS) and Arizona’s State Land Department will result in a 35-megawatt PV plant leased on state trust land over 35 years. The value of the lease is $10 million, the majority of which will help fund public education in the state.

The roughly 400-acre site was held in the state’s public land trust, according to State Land Commissioner Maria Baier. Baier approached APS with the project. “We knew it would be good for them,” she said. “Because the state trust plans generate money for education we knew they would be interested in the dual benefit of creating renewable energy and money for schools as well.”

Fully 87 percent of money that comes in through the state’s land leases support public schools. “It’s a great two-for, when you’re doing a solar project, you’re doing an innovative project. It’s quintessentially a win-win,” Baier said. She called it one of the most exciting new directions for the department to go into since it was established when the state was founded.

The APS Foothills Solar Plant will be built on land that was previously grazed. It wasn’t undisturbed, but was in an area where not a lot of other uses had been proposed for it, according to Baier. “There’s a lot of very productive agricultural access in that area. APS chose a site that wouldn’t interfere with those operations,” she said.

The land was offered at fair market value in accordance with state and federal law.”The location was reasonably priced. The main thing is the land costs could be worked into a cost formula for APS that still makes the production of the energy reasonably priced,” Baier said.

Arizona is open to doing more such deals and is actively pursuing them. Indeed, the department also auctioned a solar lease to smaller California company recently, and its working on other solar projects on state lands.

“We manage about 9.3 million acres of land,” Baier said. “We have a number of applications at the department now and are working with those who are still pursuing project.” She anticipated that of all the applications about six or seven would be realized.