Barrio: Federal funding for advanced energy initiatives has strengthened Arizona’s economy — we must keep the momentum going – Daily Independent

Michael Barrio

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By Michael Barrio | Senior Director, Advanced Energy United

Over the past four years, Arizona’s advanced energy industry has thrived thanks to significant federal investment spurred by the bipartisan Infrastructure and Inflation Reduction Act.

A recent analysis shows 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 at the forefront of turning federal funding into action – investing in exciting new projects in Arizona and the country. In Arizona, advanced energy jobs are projected to grow 9% from 2022 to 2023, compared to 3% for the economy as a whole. And with two dozen of these industrial projects announced or in the works in Arizona, even more job growth is on the way in this sector.

For example, LG Energy’s $5.5 billion 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 only the tip of the iceberg.

However, we also recognize the obstacles in our way. Energy Innovation recently released its findings on how energy provisions in the Project 2025 handbook, which include repeals of the Inflation Reduction Act and the bipartisan Infrastructure Act, could affect Arizona.

According to the group’s analysis, Project 2025’s energy agenda will result in the loss of nearly 16,300 jobs by 2030 and 24,400 jobs by 2035 – undoing the job creation we’ve experienced over the past four years. To add insult to injury, it would also lead to higher energy bills for Arizona residents.

Arizona stands at a crossroads. Advanced energy promises not only to help restore our manufacturing and provide rapid job growth, but also to reduce harmful pollutants and provide 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 is one of the biggest beneficiaries in the country in terms of number of projects, investment dollars and good jobs. Companies around the world see the potential for Arizona to continue its success in these high-tech sectors.

Federal support for advanced energy projects is poised to boost Arizona’s economy with benefits for communities across the state. Undermining these programs now would mean rolling back much of the progress of the past few years. Many of the projects that Advanced Energy United member companies invest 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 US 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 high-tech energy jobs in Arizona. Unstable and regressive policies and uncertainty threaten these jobs and the growth we have seen in recent years. That’s why it’s critical that we do everything we can to ensure that there is no sudden change in energy policy on January 20, 2025. We have the opportunity to protect our economy on November 5, and we urge Arizonans to do so.

Editor’s note: Michael Barrio is the senior director of Advanced Energy Unitedwhere he led the organization’s engagement in Arizona and New Mexico. Reader reactions, pro or con, are welcome [email protected].