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Historic Federal Investments Fueling Arizona’s Success – But We Must Harness Their Full Potential

Dan Stellar and Steven G. Zylstra//September 20, 2024//[read_meter]

clean energy jobs, solar, Clean Jobs America report

Daniel Baldonado, a contract worker for a steel fabrication company, Ironco Enterprises, installs a series of solar panels on the roof of Wells Fargo Arena on Arizona State University's Tempe campus. (Photo by Brandon Quester/Cronkite News Service)

Historic Federal Investments Fueling Arizona’s Success – But We Must Harness Their Full Potential

Dan Stellar and Steven G. Zylstra//September 20, 2024//[read_meter]

Arizona is one of the most vibrant and beautiful states in the country.  Our mountains and deserts offer diverse natural areas, along with a strong economy and a job market that make Arizona a place where more people want to live, work and play. Yet, we are at an inflection point in history in which we have years, not decades, to take on the interconnected crises of rapid climate change and biodiversity loss.

This past July was the hottest July ever recorded on Earth. Conditions here in Arizona have been similarly relentless. As of Sept. 3, Phoenix had endured a record-breaking stretch of 100 consecutive days of at least 100-degree temperatures

Dan Stellar

Arizonans know all too well that we are the epicenter of the most extreme impacts of climate change. Besides the unrelenting and deadly heat, we are challenged with historic drought, destructive wildfires, and some of the worst air pollution in the country

These sobering statistics aside, we believe there are many reasons to be hopeful.

New federal investments, fueled by recently passed infrastructure and climate laws, have empowered Arizona and private industry to enact transformative new programs and projects to combat climate change, reduce carbon emissions, and rapidly accelerate the transition toward a clean-energy economy. 

Since 2021, Arizona has received $2 billion in federal investments from the Inflation Reduction Act (IRA) and the bipartisan Infrastructure Investment and Jobs Act (IIJA), which have been catalysts for another $12 billion of investments supporting hundreds of clean energy projects.  

Steven G. Zylstra

Since the passage of the IRA two years ago, these investments have led to 18,130 clean energy jobs in Arizona alone — the seventh most in the country.

These new investments have led to the creation of innovative new programs across the state. On Earth Day 2024 (April 22), Gov. Katie Hobbs and her newly created Governor’s  Office of Resiliency announced the state was among the recipients of the $7 billion Solar For All program to improve access to rooftop and neighborhood-scale solar generation for all Arizonans. 

The state of Arizona received $156 million from Solar For All while the Hopi Tribe was awarded $25 million and energy company GRID Alternatives was granted $62 million to serve tribes in several states, including Arizona.

In a state whose identity is woven into the pink and orange threads of its Sonoran Desert sunsets, it’s only fitting that Arizona has emerged as a major player in the nationwide transition to harness the benefits of low-cost solar power.

Solar for All is but one program made possible by the Inflation Reduction Act and the Bipartisan Infrastructure Law. 

Thanks to these climate investments, Arizona is emerging as an epicenter of the clean economy. We have taken a clear leadership position in electric vehicle (EV) manufacturing, battery manufacturing, battery recycling, critical minerals, carbon capture, and solar energy. 

These industries are transforming our state, creating high-paying jobs and massive capital investments that are fueling our economic success. 

For example, LG Energy Solution, one of the world’s largest lithium-ion battery manufacturers, announced last year it is quadrupling its investment in Arizona, and plans to build a $5.5 billion facility in Queen Creek to keep pace with the country’s demand for EV batteries and batteries for energy storage systems.

Across the Phoenix metro region in Buckeye, battery maker KORE Power received an $850 million U.S. Department of Energy loan to help power the country’s energy transition.

These investments are also fueling innovation. The Gila River Indian Community is pioneering a project funded by the IRA to install solar panels over a portion of the canals that deliver water to the community. The idea is to generate renewable electricity while reducing evaporation and water loss.

While we are living in a time of unprecedented investment opportunities, we must continue to deploy and leverage their full potential to mitigate the worst impacts of climate change while continuing to fuel our economy with innovative and sustainable investments.

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

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