News

Back

Arizona opinion: Clean energy is powering state’s economy

News Category: Media

Arizona opinion: Clean energy is powering state's economy

By Anna Tovar | Arizona Daily Star

The following is the opinion and analysis of the writer:

Arizona is hot. And I’m not talking about the 113 straight days of 100-degree heat. I’m talking about our state’s job market. Arizona hit a record-low unemployment level in June (3.3 percent) and has kept it under 3.5 percent since then. A key component: the growing clean energy sector.

As an Arizona Corporation Commissioner, I’ve seen how smart policy can drive innovation, economic growth, and environmental action. Few laws showcase these attributes more than the Inflation Reduction Act (IRA). The legislation, passed in 2022, is more than America’s largest-ever investment toward addressing climate change. For Arizonans, it is bringing good-paying jobs, boosting clean energy manufacturing, and providing much-needed cost-saving assistance.

In other words, the IRA unleashed an economic and manufacturing boom in Arizona.

The IRA has catalyzed significant investments in Arizona’s renewable energy and high-tech sectors, particularly solar and semiconductors. In the last two years, our state added more than 18,000 clean energy jobs and nearly $12 billion in private investments related to the IRA. About half the energy jobs in the state (65,524) are in the clean energy sector.

A new cobalt manufacturing plant is set to open soon in Yuma County. Cobalt is a key ingredient for electric vehicle batteries, and the jobs, many of which do not require a college degree, will pay a starting salary of roughly $70,000.

And that’s just one of two dozen projects across the state made possible because of the IRA.

Beyond the economic benefits of increased manufacturing, Arizona families are directly experiencing the IRA’s impact through lower energy costs. In 2023 alone, more than 88,000 Arizona families received more than $285 million in tax credits, thanks to the IRA. The direct economic assistance came from energy efficiency upgrades to their homes. Families who take advantage of these benefits save hundreds or even thousands of dollars on their utility bills every year. Households with solar panels can save up to $200 per month, on utility bills.

The benefits are helping all Arizonans, both in large cities like Phoenix and in our rural communities. For example, the USDA announced $59 million of investments in Marana, Arizona, to build and improve 426 miles of electric infrastructure, including investments in smart grid technologies. The Oak Creek Company No. 1 will use an $8 million loan to upgrade water infrastructure to ensure clean water for residents in western Sedona.

The benefits of the IRA are not limited to Arizona. As part of NewDEAL Leaders, a group of more than 200 state and local elected officials, I see the impact of the IRA in cities and towns from coast to coast. In Massachusetts, New Bedford Mayor Jon Mitchell combined IRA funds with other sources to advance offshore wind projects and train workers, creating a ripple effect that enhances the city’s overall economic development.

Being part of this network has empowered me to champion policies that create jobs and cut emissions right here, and learn from elected officials in other areas about potential new ideas to try here.

Forward-looking policies, like those from the IRA, are only possible when we have elected leaders focused on a stronger, cleaner future. Vice President Kamala Harris and Governor Tim Walz champion an economy that works for everyone and will invest in clean air and clean jobs, making America the leader in the rapidly growing green economy. Meanwhile, Donald Trump dismisses climate change as a “hoax” and pledged to end IRA investments.

The same dynamics play out in election contests throughout this year. Democratic Congressman Ruben Gallego, who strongly backed the IRA and has emphasized its cost-saving benefits, is running for U.S. Senate. His opponent, Republican Kari Lake, attacked Gallego for his vote for the IRA.

The Inflation Reduction Act is helping us drive economic growth. From manufacturing expansions to savings on household energy bills, the IRA is delivering results.

Voters have the power to keep us moving forward by electing leaders with a clear vision. Arizona families can continue to benefit from a growing economy while ensuring clean air and clean water for generations to come.