Arizona officials are urging the federal government to release more than $150 million in solar energy funding that was awarded to the state last year.
In a joint letter to the U.S. Environmental Protection Agency (EPA) and the Office of Management and Budget (OMB), Governor Katie Hobbs, Senators Mark Kelly and Ruben Gallego, and Representatives Greg Stanton and Yassamin Ansari pressed for the immediate disbursement of funds from the Solar for All program.
The call comes after the EPA announced on August 7 that it would terminate outstanding grants under the program, which was created under the Inflation Reduction Act to expand access to clean energy.
Arizona was awarded $156 million through Solar for All in 2024. The state planned to use the money to expand distributed solar power, reduce energy costs for households, and support workforce training programs. Officials estimate the funding could result in $165 million in energy bill savings for residents and help deploy more than 60 megawatts of new solar capacity.
Sen. Mark Kelly said cutting off the grants would harm families across the state. “Arizona is a prime spot for energy investments that will create good-paying jobs and lower the cost of utility bills,” he said.
“With so many of these projects coming to the state, cutting funding to solar grants will hurt Arizona families. The EPA must reverse its decision and immediately distribute the funds allocated by Congress instead of wasting taxpayer dollars, killing jobs, and making it harder for us to meet our energy demand.”
Governor Hobbs also criticized the move, noting that the state had already signed a contract with the federal government. “The people of Arizona are counting on the lower costs, cleaner air, and good-paying jobs Solar for All will deliver,” she said.
“Without this program, eligible Arizonans will lose out on an average of 20% in annual energy bill savings per participating household, $11 million to support workforce development programs, and 61 megawatts of new solar deployment.”
The EPA has not yet publicly responded to the Arizona officials’ demand.