Governor Hobbs signs order to speed energy projects, streamline state land leasing

Governor Hobbs signed an executive order launching the "Arizona Energy Promise" Task Force to accelerate new generation and transmission, reduce permitting barriers and lower utility costs for households.

The order, the governor said, will bring together private-sector developers, public agencies, consumer advocates and subject-matter experts to develop a statewide strategic energy plan and identify opportunities to site projects and corridors that support affordability and economic growth. "This executive order will bring together members of the private sector, public sector, consumer advocates, and subject matter experts who will develop a statewide strategic energy plan," the governor said.

Why it matters: Arizona utilities estimate significant energy needs over the next 15 years, with peak demand the governor said could increase by about 40 percent. The administration framed the order as intended to secure power for households and major employers—semiconductor fabs, battery and aerospace manufacturers—and to keep energy costs low for families.

Key directives and near-term steps: The executive order directs the State Land Office to streamline leasing processes for energy projects and to identify projects on state land for expedited processing within 30 days. The governor also said her office will provide technical assistance to developers siting projects on state land and help projects take advantage of expiring renewable energy tax credits. The order also calls for examining ways to expand energy affordability assistance programs for households that are struggling to pay utility bills.

Industry and labor reaction: Jim Chandel of NextEra Energy Resources said the action is timely and urged faster deployment of generation and transmission. "The Arizona Energy Promise Task Force will accelerate large-scale growth, enable new generation, and smartly use state lands both for projects and for corridors," Chandel said, adding that NextEra has invested in Arizona projects and plans further infrastructure spending. Jeff Holly, president of the Arizona State Building Trades and a member of Sheet Metal Workers Smart Local 359, praised the order for supporting manufacturing growth and creating union jobs, saying it will help power new plants, factories and data centers coming to the state.

Consumer advocates: Kelly McGowan, executive director of Wildfire, urged pairing affordability with resilience and highlighted household strain: "Nearly 13% of Arizonans were living in poverty in 2024," she said, and many families "can't fully pay their energy costs," arguing state action is needed as federal programs face threats.

Next steps: The task force convened by the order is charged with developing the strategic energy plan and identifying projects and corridors; the State Land Office is to report or act on leasing streamlining within the 30-day direction in the order. The signing concluded with a ceremonial photograph and applause.

Authorities cited in the signing included references to renewable energy tax credits and State Land Office leasing authorities; the executive order itself is an administrative action from the Offices of the Governor.