In a move toward addressing energy affordability and sustaining job growth, Arizona Governor Kaite Hobbs signed an executive order titled “Removing Barriers to Delivering Affordable Energy for Arizona.”
The order places a focus on lowering energy costs and supporting energy-related businesses impacted by changes to federal policy. Among other actions, it directs the state to develop an energy affordability study to reduce consumer energy costs and expand affordability programs.
The Executive Order directs the State Land department to develop a report within 30 days outlining proposals to streamline and expedite processes for energy infrastructure development on state land.
The order noted federal actions to delay permitting processes for solar and wind projects may have a “serious chilling effect” on the growth of Arizona’s energy industry.
(Read: Trump: “We will not approve wind or farmer destroying solar”)
“We’re going to cut away the bureaucracy and red tape that too often holds our economy back and increase costs,” said Governor Katie Hobbs. “With this Executive Order, we will put common sense before outdated policies and procedures and build the energy infrastructure Arizona needs.”
Hobbs’ order warns that Arizona’s growing population and increased participation as a technology and manufacturing hub, along with datacenter growth, is forecast by utilities to lead to a staggering 40% increase in energy needs in 15 years.
“Renewable energy and energy storage are integral components of meeting such increased demand, making up 19% of Arizona’s power generation capacity, and growing,” said the order.
The Governor’s office said recent federal actions, including tax credit cuts under the One Big Beautiful Bill Act and executive orders clamping down on development and investment in renewables, will “jeopardize 151,122 energy-related jobs and $104 billion in private investments across the Arizona economy.”
The federal actions are estimated to increase energy costs for Arizonans by $280 per year by 2035 and leave thousands of Arizonans without access to electricity.
“Arizona benefits from abundant solar potential and the availability of state land suitable for development,” said the order.
The order also establishes the Arizona Energy Promise Taskforce, which is directed to facilitate large-scale growth while preventing significant increases in Arizonans’ energy costs, expand Arizona’s clean energy economy, and identify opportunities to streamline processes to site and develop energy infrastructure projects.
The executive order leverages state resources and directs state agencies to:
- Develop an energy affordability study to identify opportunities to reduce consumers’ energy costs and expand energy affordability programs.
- Analyze transportation fuel affordability and opportunities to plan for EV adoption.
- Provide support for energy-related businesses impacted by changes to federal policy.
- Support Tribes in advancing energy sovereignty.
- Identify ways to reduce energy costs and lower energy use.
“This executive order sets a clear, strategic framework to support continued manufacturing growth, reduce barriers to new energy projects, and make sure we can keep powering the plants, factories, and data centers that are coming here,” said Jeff Holly, president of the Arizona Building and Construction Trades Council. “All this growth translates to good wages, strong benefits, and opportunities that improve the lives of families across our state.”
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