EVelution Energy’s cobalt processing facility in Yuma County, Arizona
Renderings of EVelution Energy’s cobalt processing facility in Wellton, Arizona, are shown. Construction is set to begin toward the end of 2025.
Provided by EVelution Energy
- The huge tax and budget reconciliation bill moving through the House would end a host of clean energy incentives for companies in Arizona.
- Adding up the potential hit on the industry is nearly impossible in part because the companies at risk of losing federal aid aren’t talking about what’s at stake.
- One company that had intended to focus on batteries for electric vehicles plans to pivot toward weapons systems that could win support from the Trump administration.
As Congress considers provisions in President Donald Trump’s tax and policy bill, energy and climate research groups have been circulating dire statistics showing the damage its cuts to clean energy tax credits pose to the hundreds of billions of dollars invested nationwide in solar, wind, battery storage and other pollution-minimizing projects.
Arizona, with its abundant sun, lack of oil and gas resources, open desert expanses and business-friendly policies, has been a leader in welcoming clean energy progress incentivized by Biden-era programs. As such, it stands to lose more than most states if the bill, with these cuts in place, makes its way to Trump’s desk by his July 4 deadline.
How much is at stake for the state’s clean energy economy, installation jobs, electricity rates and grid capacity and reliability, however, remains difficult to calculate.
The Arizona Republic made repeated attempts to pinpoint the risk by identifying which projects are most vulnerable. But neither the research groups nor the companies themselves were willing to share details or a breakdown of what is on the line. The broader disruptions to the industry from Trump’s executive orders and funding pauses since January add layers of uncertainty that most project operators were unwilling to discuss.
“What we’ve heard is a number of companies are deeply concerned that tax credits may go away, and are preparing for what that means in terms of potential layoffs or being able to complete their projects,” said Diane Brown, executive director for Arizona PIRG, a consumer advocacy group engaged on energy issues in the state. “Some are also concerned about potential retribution if they speak out forcefully, and others are just trying to navigate their businesses day by day.”
Having passed the Senate on July 1, the bill is back for a vote in the House, where additional changes are possible before Trump signs the new provisions into law.
As far as existing consequences to Arizona’s clean energy industry from Trump’s policies, the latest numbers from the communication organization Climate Power suggest that more than $3.6 billion in clean energy investments and nearly 11,000 jobs in the state have been canceled, delayed or threatened since Trump took office in January.
Phoenix Mayor Kate…
Read More: Arizona clean energy industry is quiet as tax bill threatens progress
