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FLAGSTAFF — Researchers at the UA and ASU are hoping seed money from state tax dollars will help transform Arizona into an industry leader in solar energy research and policy.

Under a joint project between the two universities that was approved by the Arizona Board of Regents on Thursday, researchers will use $6.7 million to develop better solar energy technologies that can then be spun off into private enterprises.

Using state tax money that was approved by voters in 2000, researchers at the University of Arizona and Arizona State University plan to look at ways to improve solar technology and develop new ways to harness energy from the sun.

The funding also will cover policy initiatives geared to engaging political, business and industry leaders into developing the state into a worldwide leader in solar energy development.

One solar project at the UA already occurring is looking at ways to store energy collected by solar arrays using salts, said Leslie Tolbert, the UA's vice president for research.

In one scenario, the energy would be stored in vast salt caves that lie beneath Arizona's surface. Using the caves as holding cells, the amount of energy that could be stored is equal to two months of energy used in the United States, Tolbert said.

Other research programs are analyzing ways to make solar technology more efficient and smaller, which could decrease the commercial cost of using solar technology.

Though the projects are still in their infancy, the state money allows researchers to establish potentially marketable technology that can be leveraged into getting more research dollars from grants and industry partners, said Stephen Goodnick, associate vice president for research at ASU.

Given the state's abundance of sunshine and the universities' research abilities, it makes sense to target solar energy for future economic development, he said.

"We should be the nucleus of a thriving solar energy industry," Goodnick said.

But transforming Arizona into an industry leader in solar requires better economic development tools for state and local governments, said Regent Anne Mariucci.

"It's embarrassing what we're lacking," she said.

By using state tax dollars to fund research that could lead to advancements in solar technology, the UA and ASU are using the money exactly as lawmakers envisioned the program when they placed the measure on the ballot in 2000, Tolbert said.

Known as the Technology and Research Initiative Fund, the tax dollars used by the universities are given to researchers at the early stage of their work, which is often the most difficult time to compete for federal grants.

The money has taken on a new level of importance for researchers, as it has allowed them to pursue science in the face of state budget cuts to universities.

"They've been absolutely critical in giving the universities discretionary funding to seed activity that has produced returns," Tolbert said.

The results of the investments have been amazing, Tolbert said, citing research that has helped the UA increase its research funding to roughly $500 million annually.

"But you have to have that $1 in funding to get the $5 of return," she said.