Historic Federal Investments Ignite Arizona’s Growth – Unleashing Their True Potential is Key

Arizona is facing a critical juncture as the global climate crisis intensifies. While its stunning landscapes and robust economy attract many, the state grapples with severe climate challenges that demand urgent action.

This summer was particularly alarming, with July marking the hottest month ever recorded globally. In Arizona, Phoenix recently experienced a staggering 100 consecutive days of temperatures exceeding 100 degrees.

The state’s residents are acutely aware of the harsh realities brought on by climate change. Aside from oppressive heat, Arizona confronts formidable issues, including historic droughts, rampant wildfires, and troubling air quality.

Despite these challenges, there is a clear path toward optimism.

Recent federal investments stemming from new infrastructure and climate legislation have empowered Arizona to initiate transformative projects aimed at combating climate change. The focus is on reducing carbon emissions and accelerating the shift to a clean energy economy.

Since the passage of the Inflation Reduction Act and the Infrastructure Investment and Jobs Act, Arizona has secured approximately $2 billion in federal funding. This has spurred an additional $12 billion investment aimed at launching hundreds of clean energy projects across the state.

As a result, over 18,130 clean energy jobs have emerged, positioning Arizona seventh in the nation for clean energy job creation.

On Earth Day 2024, Governor Katie Hobbs, alongside the newly established Governor’s Office of Resiliency, revealed that Arizona would participate in the $7 billion Solar For All initiative. This program aims to enhance access to solar generation for all Arizonans.

Arizona’s allocation from Solar For All amounts to $156 million, while the Hopi Tribe and GRID Alternatives received $25 million and $62 million, respectively, to support tribal communities.

In a state celebrated for its breathtaking sunsets, Arizona’s commitment to harnessing solar energy is both fitting and crucial.

Solar For All exemplifies a broader wave of programs made possible by recent federal support. As a result, Arizona is evolving into a pivotal player in the clean energy economy.

The state has taken significant strides in electric vehicle manufacturing, battery production, carbon capture, and solar energy initiatives. These developments promise to generate substantial employment opportunities and economic growth.

For instance, LG Energy Solution recently announced plans to invest $5.5 billion to establish a new facility in Queen Creek, aimed at meeting the burgeoning demand for energy storage and electric vehicle batteries.

Meanwhile, battery manufacturer KORE Power secured an $850 million loan from the U.S. Department of Energy to bolster the nation’s energy transition.

In a unique initiative, the Gila River Indian Community is leading a project funded by the Inflation Reduction Act, which will install solar panels over canals to generate electricity while mitigating water loss.

As unprecedented investment opportunities arise, it remains crucial for Arizona to harness their potential. Continued efforts will be essential in addressing the dire impacts of climate change while foster economic growth through sustainable practices.

Dan Stellar is the state director of The Nature Conservancy in Arizona. Steven G. Zylstra serves as the president and CEO of the Arizona Technology Council and SciTech Institute.