Governor Hobbs Fights Back: Arizona's Solar Showdown

The Trump administration's decision to end a federal solar energy program that guaranteed the state $156 million in awards is being challenged by a coalition of Democrats led by Governor Katie Hobbs.

Katie Hobbs joined Arizona's congressional delegation this week in sending a letter to Environmental Protection Agency Administrator Lee Zeldin, disputing his claim that funding for the Solar for All program has been legally withdrawn.

"Despite your unilateral claim that the Solar for All program has been terminated, it is clear that the funds for its grant awards remain obligated," the letter states, citing a Congressional Budget Office analysis showing only $19 million would be recovered from the program.

Program Promised Major Solar Expansion

The goal of the 2022 Inflation Reduction Act's Solar for All program was to increase low-income communities' access to solar energy. By 2026, Arizona's residential solar capacity would have grown from 7 megawatts to 61 megawatts.

The Hopi Tribe received $25 million through the program to bring solar energy to their community, where more than one-third of homes lack electricity access.

"Gutting Solar for All will slash programs to lower energy costs, kill jobs, and hurt our economy," Hobbs said in a statement announcing her opposition to the cuts.

Broader Energy Policy Disputes

The federal funding dispute comes amid broader setbacks for renewable energy in Arizona. In previous weeks, Arizona Public Service abandoned its 2050 carbon-neutral goal, while state regulators approved increased fees for homes with solar panels and withdrew renewable energy requirements.

Zeldin defended the program's termination, claiming most projects were "still very much in the early planning stage." However, Arizona officials argue that many recipients have already hired staff and begun construction.

Congressional Support

Joining Hobbs in the challenge are Senators Mark Kelly and Ruben Gallego, along with Representatives Greg Stanton and Yassamin Ansari. The delegation argues the termination violates legal obligations to grant recipients.

"The program's termination harms America's energy future and leaves grant recipients, many of whom have already hired staff and broken ground on critical projects, without the funding they are legally owed," the letter states.

The dispute highlights growing tensions between state and federal officials over energy policy as Arizona faces record electricity demand. The state receives over 300 days of sunshine annually, making it a prime candidate for solar development.

The outcome of the funding disagreement may have significant impacts on Arizona's renewable energy targets and the availability of solar energy in low-income areas.