Donald Trump’s DOE Scraps Billions of Dollars for Clean Energy in Arizona

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Amy Dominguez, amy.dominguez@sierraclub.org

Tucson, Ariz. - Today, the Trump administration's Department of Energy scrapped a planned $1.8 billion federal loan to Arizona's largest utility, Arizona Public Service (APS). The funds, which were announced in January 2025, would have financed clean energy resources to support the utility's transition to clean energy and away from coal. 

The loan was meant to fund transmission projects, renewable generation and energy storage, including the 4-hour, 150 MW Agave battery project. The Department of Energy's cancellation takes away funding for a clean energy transition and risks prolonging the use of outdated and expensive fossil fuels that pollute the air, use excessive amounts of water, and harm public health. Clean renewable solar is one of Arizona's best resources -- requiring no pipelines and using very little water. 

In response, Sierra Club Grand Canyon Chapter Director, Sandy Bahr, issued the following statement: 

“By cutting dollars dedicated to clean energy projects, Donald Trump risks delaying Arizona's transition to clean energy and clean resources, irresponsibly prolonging a dependence on fossil fuels, driving up ratepayer costs, endangering health and the climate. These decisions continue to put corporate polluters first. It's up to Arizonans to continue to demand the clean energy future we deserve, with investments in solar and battery storage." 

 

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About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.