The Daily Independent: Barrio - Federal Funding for Advanced Energy Initiatives has Strengthened Arizona’s Economy — We Have to Keep the Momentum Going

Over the past four years, Arizona’s advanced energy industry has boomed, thanks to significant federal investments spurred by the Bipartisan Infrastructure Law and the Inflation Reduction Act.

Recent analysis indicates that the Inflation Reduction Act alone has led to over $11.8 billion in new advanced energy investments in Arizona and over 18,000 new advanced energy jobs. This is transformative progress for Arizona — allowing us to build a strong advanced energy economy that will create more high-paying jobs, reduce harmful pollutants and position our state as a leader in the energy industry. 

Advanced Energy United represents many of the companies on the forefront of turning federal funding into action — investing in exciting new projects across Arizona and the country. In Arizona, advanced energy jobs grew by 9% from 2022 to 2023, compared to 3% for the economy as a whole. And with two dozen of these industry projects announced or in the works in Arizona, even more job growth for this sector is on the way. 

For example, the $5.5 billion LG Energy battery manufacturing facility in Queen Creek — billed as the largest single investment for a stand-alone battery manufacturing facility in North America — would create thousands of jobs in the region. And this project is just the tip of the iceberg.

However, we also recognize the obstacles in our path. Energy Innovation recently released its findings of how the energy provisions in the Project 2025 playbook, which includes repealing the Inflation Reduction Act and Bipartisan Infrastructure Law, could impact Arizona.

According to the group’s analysis, the Project 2025 energy agenda would lead to nearly 16,300 jobs being lost by 2030 and 24,400 jobs by 2035 — undoing the job creation we’ve experienced in the past four years. To add insult to injury, it would also lead to higher energy bills for Arizonans.

Arizona stands at a crossroads. Advanced energy promises not only to help rebuild our manufacturing and provide rapid jobs growth, but also to reduce harmful pollutants and ensure cleaner air. From batteries to green hydrogen, from solar panels to items further up the supply chain, our state is becoming a hub for the economy of the future.

In fact, Arizona stands to be one of the biggest beneficiaries in the country in terms of project numbers, investment dollars, and good jobs. Companies around the world see the potential of Arizona to continue its success in these high-tech sectors.

Federal support for advanced energy projects is poised to supercharge Arizona’s economy, with benefits for communities across the state. Undercutting these programs now would mean going backwards on much of the progress of the past few years. Many of the projects that Advanced Energy United’s member companies are investing in are in the planning and development stages, and if funding is pulled, our communities and workers will lose out.

In fact, analysts have concluded that Project 2025 more broadly could cost 1.7 million jobs and hit U.S. GDP by $320 billion over the next five years.

As business leaders, we know that this kind of instability is dangerous for our economy and for our workers who rely on these jobs to put food on the table and a roof over their families’ heads.

There are over 80,000 advanced energy jobs in Arizona. Volatile and regressive policies and uncertainty imperil those jobs and the growth we’ve seen in recent years. That’s why it’s critical that we do everything we can to ensure that there isn’t an abrupt change in energy policy come Jan. 20, 2025. We have the opportunity to safeguard our economy on Nov. 5, and we urge Arizonans to do so.