Removing Barriers to Delivering Affordable Energy for Arizona

WHEREAS, Arizona continues to be one of the fastest growing states in the United States, ranking among the most popular destinations for people moving within the country; and

WHEREAS, to meet the increased energy demand of a growing population and economy, Arizona utilities estimate significant energy needs over the next 15 years, with some utilities projecting peak demand to increase by 40% within the time period; and

WHEREAS, Arizona’s position as a preeminent technology hub and leader in wage, export, and foreign-direct investment growth hinges on its ability to deliver reliable and affordable energy for all Arizonans; and

WHEREAS, Arizona’s utilities continue to comprehensively plan to reliably meet the current and projected demand growth, creating one of the most resilient and reliable energy systems in the country; and

WHEREAS, Arizona’s largest electric utilities have all set goals to reduce carbon emissions, requiring additional renewable energy resources to meet those goals; and

WHEREAS, renewable energy and energy storage are integral components of meeting such increased demand, making up 19% of Arizona’s power generation capacity, and growing; and

WHEREAS, recent federal actions and directives to delay federal permitting processes for solar and wind energy projects in Arizona may have a serious chilling effect on the growth of Arizona’s energy industry; and

WHEREAS, it is estimated that recent federal actions will jeopardize 151,122 energy-related jobs and $104 billion in private investments across the Arizona economy, potentially increasing energy costs for Arizonans by an estimated $280 per household per year by 2035 and leaving thousands of Arizonans without access to electricity; and

WHEREAS, taken together, recent federal actions may result in delays, increased costs, and cancellations of planned energy projects necessary for Arizona’s continued growth; and

WHEREAS, deploying readily available energy technologies and projects is critical for the long-term growth and success of Arizona’s economy; and

WHEREAS, Arizona benefits from abundant solar potential and the availability of state land suitable for development; and

WHEREAS, the Arizona State Land Department is charged with managing State Trust Land and has a fiduciary responsibility to serve the best interests of the State Trust through the strategic use of state lands, including, where appropriate, leases for solar and wind energy project deployment; and

WHEREAS, I have set a goal of building a 21st-century reliable and affordable energy economy in Arizona that delivers on quality jobs, lower energy costs, and a secure energy future; and

WHEREAS, it is in the best interest of the State and the security of Arizonans to leverage state resources to reduce energy costs and support building the energy infrastructure required to meet the projected energy demand growth.

NOW, THEREFORE, I, Katie Hobbs, Governor of the State of Arizona, by virtue of the power vested in me by the Arizona Constitution and the laws of this State, hereby order as follows:

1. The Arizona Energy Promise Taskforce (“Taskforce”) is established, administered by the Governor’s Office of Resiliency. The Taskforce shall be composed of members of the private sector, public sector, consumer advocate representatives, and subject matter experts.
   • The Taskforce shall be chaired by the Director of the Governor’s Office of Resiliency, or their designee, and staffed by the Governor’s Office of Resiliency.
   • No later than March 1, 2026, the Taskforce shall deliver to the Governor the following reports:
     • A report detailing a responsible and strategic policy framework to facilitate data center and other large load customer growth, minimizing impact to ratepayers while preserving Arizona’s competitive advantage.
     • An Arizona energy strategy plan outlining opportunities to take advantage of emerging energy technologies, including but not limited to geothermal and advanced nuclear generation.
     • A generation and transmission corridor strategic plan that identifies areas of opportunity to cut red tape related to the lease, sale, or other use of state lands in a way that advances the streamlined deployment of necessary generation and transmission projects. This plan shall be completed in consultation with the Arizona State Land Department, Power Plant and Line Siting Committee, Arizona Department of Transportation, Arizona Department of Administration, Arizona Game and Fish Department, Arizona State Parks, utility stakeholders, tribes, energy infrastructure developers, and related government and community organizations and shall be consistent with the best interests of the beneficiaries of the State Land Trust.
2. The Director of the Governor's Office of Resiliency, the Director of the Residential Utility Consumer Office, and the Director of the Department of Economic Security shall:
   • Coordinate an effort to analyze the state of energy resilience and affordability in Arizona, identifying areas of the State that would benefit the most from energy affordability assistance, and a framework to deliver more accessible energy affordability programs.
   • Deliver a report to the Governor outlining findings and potential policy, programs, and legislative opportunities to help address energy affordability no later than March 1st, 2026.
3. The Office of Resiliency and the Office of Tribal Relations shall support tribal energy sovereignty, economic development, and tribal enterprise in the energy industry through:
   • Convening Arizona-based Tribes to identify federal, state, and local opportunities to bolster Tribal energy sovereignty and economic development.
   • Working with the Arizona Office of Economic Opportunity and its Greater Arizona Development Authority to further implement its mission of connecting Tribal communities to affordable financing for critical infrastructure projects, including and especially Tribal-led energy projects, and continuing to find innovative capital solutions, as well as continued work supporting Tribal workforce development efforts under the State’s Talent Ready AZ workforce initiative.
4. The Office of Resiliency shall provide support to energy and manufacturing projects navigating uncertainty due to changes in federal tax incentives and permitting processes and shall:
   • Whenever relevant, collaborate with the Arizona Commerce Authority, the Arizona Corporation Commission, and Arizona utilities to maximize usage of federal funding to reduce costs for Arizona energy and economic development projects.
   • Coordinate among all relevant entities to support eligible solar, wind, storage, advanced geothermal, and nuclear projects in commencing construction as soon as possible so that they might receive federal tax credits.
5. The Arizona State Land Department shall:
   • Within 30 days, deliver a report outlining the following: (1) a description of the standard leasing process with associated generalized timelines for energy-related leases, (2) opportunities and related administrative proposals to streamline and expedite, to the greatest extent reasonable, Arizona State Land Department processes for the purposes of expanding energy infrastructure on state lands.
6. Direct the Director of the Office of Resiliency to use State Energy Program funding to fund one full-time equivalent staff position for the Arizona State Land Department to complete work related to energy infrastructure projects.
7. The Arizona Department of Transportation shall:
   • Collaborate with Arizona electric utilities to provide the data necessary for utilities to conduct comprehensive planning for increased energy demand stimulated by increased electric vehicle (EV) adoption, to the greatest extent possible consistent with Arizona law.
   • No later than March 1st, 2026, deliver a report to the Governor’s Office of Resiliency that identifies opportunities for the Department to participate in transmission planning, including through the co-location of transmission in existing state rights-of-way.
8. To address reliable access to necessary fuel, the Arizona Department of Agriculture shall coordinate with the Arizona Department of Transportation, the Arizona Department of Environmental Quality, and regional partners to deliver a report analyzing transportation fuel availability and the required infrastructure to deliver such fuel. The analysis shall consider impacts of any potential changes to transportation fuel on air quality, other natural resources, and to the extent practical, estimated change to the cost to consumers.
9. All Executive Branch Agencies shall implement to the extent practicable the following:
   • A plan that could lead to an agency-wide 5% reduction in energy consumption by June 30th, 2027. The plan shall identify projects and actions that could produce such a reduction, as practical. Executive Branch Agency Directors shall submit this report to the Director of the Governor’s Office of Resiliency and the Director of the Arizona Department of Administration via electronic submission.
   • Beginning June 30th, 2027, report to the Governor’s Office and the Director of the Arizona Department of Administration via electronic submission by June 30th of each year, summarizing (1) any actions taken in the previous year to reduce energy consumed and any associated energy cost savings, and (2) identifying potential utility bill cost saving projects, including but not limited to building retrofit and/or other energy efficiency upgrade projects that could be initiated and/or completed in the following year, including the estimated project cost and estimated bill savings associated with identified project(s).
10. For the purposes of this Executive Order, the terms “Executive Branch Agency” and “Executive Branch Agencies” shall include, without limitation, all executive departments, agencies, offices, and all state boards and commissions and the employees and officers thereof, except for: (a) any state agency that is headed by a single elected state official; (b) the Corporation Commission; and (c) any board or commission established by ballot measure during or after the November 1998 general election.
11. This Executive Order shall not confer any legal rights or remedies upon any person and shall not be used as a basis for legal challenges to any action or inaction of a state agency, officer, employee, or agent thereof.
12. If any provision of this Executive Order or its application to any person or circumstance is held invalid by any court of competent jurisdiction, such invalidity does not affect any other provision or application of this Executive Order that can be given effect without the invalid provision or application. To achieve this purpose, the provisions of this Executive Order are declared to be severable.