The U.S. Forest Service earlier this month issued the Final Record of Decision (ROD) for the Hermosa Critical Minerals Project in Southern Arizona’s Patagonia Mountains, completing the federal environmental review required for portions of the project planned on National Forest land. The decision follows several years of environmental study, public input, tribal and interagency consultation. 

Project developer South32 says Hermosa could produce up to five federally designated critical minerals, including zinc, silver, and manganese. The project includes a broader land package with potential for additional polymetallic and copper mineralization, positioning it as a significant domestic source of minerals tied to energy, manufacturing and supply-chain needs. 

The decision paves the way for South32 to fully develop the project beyond its privately held land, including building ancillary infrastructure such as a primary access road, a secondary dry-stack tailings facility, and allowing utility UniSource Energy Services to build a portion of a 138-kV power line on Coronado National Forest land.  

Construction is already halfway complete on private land. It was the first mining project accepted into the federal FAST-41 permitting program, which is reserved for nationally significant infrastructure projects meeting rigorous criteria.  

“From the beginning, we designed Hermosa to be a different kind of mine, and the federal review process helped make it even better,” South32 Hermosa President Pat Risner said. “Years of agency review, Tribal consultation and community engagement strengthened environmental protections, informed project refinements and shaped a project that can transform the local economy. We are grateful to everyone who participated throughout the process and look forward to continuing that engagement as we move from construction and development into operations.” 

The Final ROD also represents an important milestone in the broader national conversation around domestic critical mineral development and permitting reform. Hermosa’s advancement under FAST-41 did not reduce the thoroughness of environmental review or limit public input. Rather, the process helped improve interagency coordination, transparency, and accountability across federal agencies while ensuring the project moved through permitting in a timely and disciplined manner.  

Danny Seiden, president and CEO of the Arizona ˿����Ƶ of Commerce & Industry, said the Hermosa project also demonstrates the value of a predictable and transparent permitting process. 

“South32’s Hermosa project represents the kind of investment Arizona needs to strengthen domestic supply chains, support critical minerals production, and create long-term jobs in Santa Cruz County and across the state,” he said. “It’s also a model for how permitting should work. Hermosa has gone through years of environmental review, public input, and interagency consultation, and the project remains on track under the federal permitting schedule. That’s the kind of predictable, transparent process Arizona needs more of if we want to lead in industries critical to our economy and national security.” 

Over the course of the review process, Hermosa underwent extensive federal environmental analysis and consultation including more than 120 days of formal public comment periods, coordination across six federal and state agencies and consultation with 12 Tribes with historic affiliation to the region. 

“If we’re serious about bringing supply chains back to America and reducing our dependence on foreign countries, we need to responsibly produce more critical minerals here at home. This is exactly what the Hermosa project is doing,” said U.S. Senator Mark Kelly (D-Ariz.). “This milestone shows we can move projects through an efficient permitting process to create good-paying jobs while strengthening our national security.” 

South32 conducted extensive baseline environmental studies and community engagement before permit applications were formally submitted, allowing project alternatives, water management approaches, access roads and mitigation measures to be shaped by stakeholder input early in the process. 

The Final ROD confirms that environmental protections, mitigation commitments, and adaptive management measures are integrated into the approved project. Throughout the review process, South32 refined Hermosa’s design in response to agency feedback, Tribal consultation and community input, including: 

• Redesign of the dry-stack tailings facility to avoid sensitive plant species; 
• Design of a Primary Access Road, necessary for expansion, to also reduce traffic impacts to Patagonia and outdoor recreation areas; 
• Surface and ground water quality and quantity monitoring beyond state level requirements; 
• Wildlife crossings and habitat protections; 
• Cultural resource avoidance measures; and 
• Operational refinements are designed to reduce emissions, noise, and surface disturbance.��

In total, South32 committed to more than 135 conservation, mitigation and monitoring measures developed in coordination with federal agencies, Tribes and local stakeholders. Many of those commitments will become federally enforceable components of the final Mine Plan of Operations, and associated management plans outlined in the Final ROD. 

“The Final Record of Decision for Hermosa is another important milestone for Nogales. It reflects years of collaboration to ensure the Hermosa project is developed in a way that balances economic opportunity with environmental stewardship,” said Nogales Mayor Jorge Maldonado. “South32 is making a long-term investment in the people and future of Nogales through investments like its remote operating center “Centro”. Hermosa has the potential to create new opportunities to support good-paying jobs and help ensure that more of our young people can build successful careers right here at home, and we appreciate South32’s commitment to developing Hermosa responsibly while creating opportunities for local families, students and businesses.” 

With a surface footprint of 750 acres and projected to use approximately 90% less water than other mines in the region, South32 designed Hermosa to minimize its environmental impact. Once in operation, Hermosa would help transform and grow the local economy and create up to 900 good-paying jobs during peak operations, and support investment across surrounding communities for decades to come. 

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The Arizona Court of Appeals Division Two has upheld a lower court ruling in favor of the Town of Marana in a referendum dispute tied to a planned hotel development.

In a memorandum decision filed June 23, the Court of Appeals affirmed the Pima County Superior Court’s ruling denying requests from Arizonans for Responsible Development to force Marana to process referendum petitions challenging a town development agreement.

The case centered on a Marana resolution approving a development agreement for approximately 19 acres of town-owned property near Marana Main Street and Civic Center Drive. The agreement is tied to the Rancho Marana West Town Center Specific Plan, which was adopted in 2008 and contemplated a mixed-use town center with commercial, retail, office, institutional, entertainment and residential uses.

Arizonans for Responsible Development submitted referendum petitions seeking to refer the resolution to voters. Marana rejected the petitions, arguing the resolution implemented previously adopted policy and was administrative rather than legislative. Under Arizona law, legislative acts may be subject to referendum, while administrative acts generally are not.

The superior court sided with Marana earlier this year, finding the resolution was administrative and not subject to referendum. The Court of Appeals agreed.

The Arizona ˿����Ƶ of Commerce & Industry participated in the case as amicus curiae through the Arizona ˿����Ƶ Legal Center.

“This decision is an important affirmation of the principle that referendum powers cannot be used to relitigate every administrative step needed to carry out an already-approved development plan,” said Mike Bailey, general counsel and director of legal reform programs for the Arizona ˿����Ƶ. “Arizona’s referendum process is an important constitutional right, but there has to be a clear line between creating new policy and implementing policy that has already gone through the public process. That distinction matters for communities, employers and developers who need certainty to move projects forward.”

In its decision, the Court of Appeals said the Marana resolution did not create new policy. Rather, the court found that the development agreement implemented the requirements of the Rancho Marana West Town Center Specific Plan Amendment, which had already been adopted by a 2008 ordinance.

The court wrote that the development agreement “furthers an already-declared policy” and later concluded the resolution was “not legislative but administrative and is therefore not referable.”

The court also rejected the challengers’ broader statutory argument that all development agreements are automatically subject to referendum under Arizona law. The court said Arizona statute does not expand the traditional limits on local referendum power and noted that if the Legislature intended to make all development agreements subject to referendum, “it could have said so clearly.”

Bailey said the ruling is especially important as Arizona communities work to advance projects that support housing, hospitality, commercial development and job creation.

“Economic development depends on a process that is transparent, predictable and fair,” Bailey said. “When a community has already adopted a plan, and a later action simply carries out that plan, businesses should not face endless uncertainty over whether that implementation step can be delayed or derailed. This ruling helps reinforce that common-sense boundary.”

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The Arizona Legislature wrapped up its 2026 session after 153 days, leaving the state’s business community with a mix of accomplishments to celebrate and concerns about Arizona’s long-term competitiveness.

Business leaders pointed to several significant victories, including expanded health coverage options for small employers, additional infrastructure funding to support economic development projects, preservation of key economic development tools, and a bipartisan budget that avoided broad-based tax increases. At the same time, they expressed concern about reductions to public university funding, the repeal of a longstanding job-creation incentive, and policy changes affecting future data center investment.

“Like most sessions in divided government, this legislative session delivered a mixed bag of results for job creators,” said Courtney Coolidge, executive vice president of the Arizona ˿����Ƶ of Commerce & Industry. “The good news is that Arizona continues to demonstrate a commitment to economic growth, competitive tax policy, and job creation. The challenge moving forward is ensuring we don’t undermine the very advantages that have made Arizona one of the most attractive places in the country to invest and grow.”

Among the business community’s top priorities this year was legislation aimed at helping small employers provide affordable health coverage to workers.

HB 2693, sponsored by Rep. David Livingston and signed into law by Gov. Katie Hobbs, creates a pathway for small businesses to join together through a statewide business organization to purchase health coverage. Supporters say the measure will allow smaller employers to increase purchasing power, reduce costs, and provide more stable benefit options.

“Small businesses often face the greatest challenges when it comes to offering competitive health benefits,” Coolidge said. “This legislation creates a voluntary, market-based option that gives employers more flexibility and employees more choices.”

Another significant victory came through the state budget, which included additional funding capacity for Arizona’s Public Infrastructure Program, a tool frequently used to support large-scale economic development projects.

The program helps communities finance roads, water systems, and other infrastructure needed to accommodate major investments. It has been utilized in projects involving companies such as TSMC, Intel, Amkor, and LG Energy Solution Arizona.

“Arizona’s economic success depends on our ability to compete for transformational projects,” Arizona Manufacturers Council Executive Director Grace Appelbe said. “Those investments don’t happen without infrastructure, and communities need tools that allow them to prepare for growth.”

The ˿����Ƶ also praised lawmakers for largely preserving the Arizona Competes Fund, one of the state’s primary economic development incentives. Early budget discussions included proposals to sweep money from the fund to help address budget shortfalls, but the final agreement maintained most of the program.

In addition, the budget included full conformity with recent federal tax changes, avoided broad-based business tax increases, and provided funding to support Arizona’s ongoing Colorado River negotiations.

Still, business leaders say several decisions made during the session could create challenges in the years ahead.

One of the biggest concerns was the repeal of the Quality Jobs Tax Credit, a program designed to encourage companies to create high-wage jobs and make major capital investments in Arizona.

The ˿����Ƶ also expressed concern over a three-year pause on issuing new sales tax exemption certificates for future data center projects. While existing projects will continue under current agreements, supporters of the incentive argue that uncertainty surrounding future projects could make Arizona less competitive in attracting additional investment.

“The state’s economic momentum didn’t happen by accident,” Coolidge said. “For years, Arizona has built a reputation for consistency and predictability. We don’t want to send a message to investors that they can’t plan for the long-term.”

Higher education funding remains another area of concern for the business community.

Arizona employers have increasingly emphasized the importance of workforce development as the state’s economy continues to expand. Business advocates warned that cuts to public universities could affect the talent pipeline needed to support growth in industries ranging from advanced manufacturing and semiconductors to healthcare and technology.

“Workforce remains one of the defining economic issues facing Arizona,” Coolidge said. “If we want to continue attracting investment and creating opportunity, we have to continue investing in the talent that makes those opportunities possible.”

Attention will now shift from the Legislature to voters, who will weigh in on several measures referred to the ballot by lawmakers, as well as potential citizen initiatives that are still gathering signatures.

For Arizona employers, the end of the legislative session marks the beginning of another important phase in shaping the state’s economic future.

“Arizona remains in a strong position,” Coolidge said. “In the months ahead, we’ll encourage voters to elect leaders who will continue making the decisions necessary to stay ahead of states that are competing for the same jobs, investments, and talent.”

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This column by Arizona ˿����Ƶ of Commerce & Industry President and CEO Danny Seiden originally appeared in the on May 27, 2026.

According to the latest  from the American Legislative Exchange Council, Arizona ranks second in the nation for economic growth over the past 10 years. During that time, we’ve ranked in the top-5 for GDP growth, domestic migration, and employment growth, clear indicators of our strength as a destination for both business and talent.

Arizona has also ranked No. 1 on the Common Sense Institute’s  every year since 2019. That growth has translated into real gains for Arizonans: more jobs, rising incomes, and the largest percentage-point decline in poverty in the country.

Despite this undeniable track record, a misguided proposal from some lawmakers threatens to wipe out a key piece of our economic toolbox at precisely the wrong time.

Specifically, they are calling for a sweep of the Arizona Competes Fund, a move that would effectively pull the rug out from under dozens of projects already underway, inflicting lasting damage on the state’s economic credibility.

A complete sweep would jeopardize 34 projects for which grants have already been committed, representing more than 21,000 potential new jobs and more than $12.6 billion in capital investment. That’s like wiping out an entire year’s worth of economic development progress.

Even more concerning, forcing the state to renege on commitments — after funds were appropriated by the Legislature — would trigger a serious crisis of confidence. If Arizona is willing to walk away from its obligations to employers and investors, why would anyone trust it to honor future commitments?

As budget negotiations continue, some have talked about eliminate the Quality Jobs Tax Credit, a program that has been key to making Arizona a magnet for corporate headquarters relocations.  reports that the Phoenix metro ranks in the top 4 for HQ relocations since 2018, projects that come with significant high-wage job gains — the type that fuel additional growth across the economic ladder.

The  is actively competing for an additional 51 HQ projects, representing more than 11,000 potential new jobs with average wages over $90,000 — demonstrating both the opportunity ahead and what’s at stake if Arizona gets this wrong.

At a moment when the state is competing for once-in-a-generation economic opportunities, maintaining Arizona’s credibility and business reputation is absolutely essential.

To be clear: Arizona’s transparent, effective economic development programs should be viewed as a model for the nation. Unlike so many of our competitor states, Arizona does not engage in opaque, backroom deals.

Instead, our programs are accountable and performance-based, with criteria outlined in statute and companies only receiving funds after they’ve filled their commitments. Arizona doesn’t place risky bets. 

These tools complement Arizona’s core advantages: a skilled workforce, modern infrastructure, and a pro-growth tax and regulatory environment.

They also deliver a strong return. Analysis from the ACA shows that companies participating in the Competes program have created more than 22,000 jobs with an average wage approaching $90,000. Those projects have generated over $1.2 billion in state and local tax revenue — meaning every $1 invested returns more than $22 to the public.

Eliminating this program would not produce meaningful budget savings. Instead, it would likely reduce future revenue by driving away jobs, wages and investment.

And if Arizona steps back, other states will step in. Competitors like Texas, Ohio and California would welcome the opportunity to capture projects that might otherwise have come here.

As Warren Buffett famously observed, it takes years to build a reputation and minutes to destroy it. Over the past decade, Arizona has earned a reputation as one of the most reliable places in the country to do business.

Lawmakers should come together to pass a responsible budget that protects and strengthens the policies driving Arizona’s growth. Arizona has spent a decade earning its reputation. Now is not the time to risk it.

Danny Seiden is the president and CEO of the Arizona ˿����Ƶ of Commerce & Industry.

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Banner Health’s research enterprise delivered new treatment opportunities to patients in 2025 while strengthening Arizona’s position in medical innovation, according to the health system’s newly released .��

The report also highlights Banner’s role in Arizona’s health care and research economy. 

Banner’s $80.5 million research enterprise now supports 1,300 translational and clinical studies spanning neuroscience, cardiology, oncology and orthopedics.  

“We are deeply committed to advancing patient care through the power of clinical research,” said Corey Casper, MD, MPH, Banner’s chief research officer.  

Banner’s research footprint spans 33 hospitals and includes 371 team members, 315 scientific publications, 158,470 biomarker tests for collaborators and 16,389 brain tissue samples shared with scientific groups in 10 countries. 

Banner said partnerships are also helping expand the reach of its research enterprise, including collaborations with the University of Arizona and MD Anderson Cancer Center, as well as relationships with institutions such as Cleveland Clinic, Mayo Clinic, Johns Hopkins University and Arizona State University.  

Amy Perry, Banner Health’s president and chief executive officer, described the research enterprise as a “strategic investment in Arizona’s future” in the release.  

Among the milestones highlighted in the 2025 report was Banner’s role in advancing the first FDA-approved device for severe mitral annular calcification, a heart valve condition affecting up to 30% of older Americans that has traditionally required open-heart surgery.  

“Banner Health’s continued commitment to patients and communities shows the role Arizona can play in advancing medical innovation,” said Danny Seiden, president and CEO of the Arizona ˿����Ƶ of Commerce & Industry. “Its investment in research and patient care is strengthening our economy and making a meaningful difference for Arizona patients and communities.” 

Banner Health will be recognized with the Corporate Citizen Award at the Arizona ˿����Ƶ’s Annual Awards Celebration on June 2, 2026, highlighting its broader role in Arizona’s economy and its dedication to serving communities across the state. 

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A Maricopa County Superior Court judge has upheld the constitutionality of an Arizona law designed to help mid-sized cities attract large international headquarters projects, delivering a win for state business groups and economic development advocates.

Senate Bill 1543 was passed in 2025 amid debate surrounding Axon Enterprise’s proposed headquarters expansion in Scottsdale, which included plans for housing, hotels, restaurants, and other commercial development surrounding the company’s corporate campus.

Supporters argued the measure would help Arizona compete for major corporate and international headquarters investments by giving qualifying cities additional flexibility for large mixed-use campus developments. Critics, meanwhile, argued the bill amounted to unconstitutional “special legislation” tailored specifically for Axon’s project.

A lawsuit was brought by Scottsdale-based TAAAZE, a political action committee that argued the law improperly carved out special treatment for certain developments and effectively bypassed local referendum efforts.

In a ruling issued late last week, Judge Michael Herrod rejected those claims, finding that the measure serves a broader statewide economic development purpose by helping attract major international headquarters investments to Arizona.

“The statewide problem addressed by A.R.S. § 9-461.19 is attracting international headquarters,” the ruling states. “The legislature has made a determination that to address this problem, cities of middle-sized populations are likely candidates to attract such headquarters.” 

The court further concluded that because the statute could apply to other qualifying cities and projects in the future, it is not a special law.

The Arizona ˿����Ƶ of Commerce & Industry, which filed an amicus brief in the case, said the decision reinforces the state’s ability to compete for major employers and long-term investment.

“This ruling is about much more than a single project,” said Danny Seiden, president and CEO of the Arizona ˿����Ƶ of Commerce & Industry. “Arizona’s economic growth depends on our ability to compete for major employers, attract high-wage jobs, and create an environment where companies can invest with confidence. The court recognized that the Legislature has the authority to pursue policies that support statewide economic development and long-term competitiveness.”

Mike Bailey, the ˿����Ƶ’s general counsel and director of legal reform programs, said the ruling should result in additional clarity around the Legislature’s role in zoning and economic development policy.

“The court affirmed an important legal principle here: zoning authority ultimately flows from the state, and the Legislature has broad discretion to address matters of statewide concern,” Bailey said. “The decision also reinforces that laws aimed at encouraging economic development are not unconstitutional simply because they may initially apply to a limited number of jurisdictions or projects.”

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A recent court decision in Pima County is being viewed as a meaningful win for Arizona’s business and development community, reinforcing long-standing legal boundaries around when local actions can be challenged by referendum.  &�Բ�����;

The April 30 ruling denied a petition filed by a group called Arizonans for Responsible Development, which had sought to force the Town of Marana to process a referendum challenge to a development agreement tied to a hotel project on approximately 19 acres of town-owned property in downtown Marana. Judge Jeffrey T. Bergin found that the town’s action was administrative rather than legislative, meaning it is not subject to referendum under Arizona law.   

The practical effect: the project can move forward subject to appellate review.  &�Բ�����;

Why it matters for Arizona’s business community  &�Բ�����;

Mike Bailey, general counsel and director of legal reform programs for the Arizona ˿����Ƶ, said the ruling has implications well beyond Marana.  &�Բ�����;

“This decision reinforces an important principle: when a community has already gone through a public process to establish its development plan, a resolution that carries out that plan shouldn’t have to start from scratch,” Bailey said. “Using the referendum process to relitigate settled land-use policy is a tactic we’re seeing more frequently, and it creates real uncertainty for businesses and communities trying to plan ahead.” &�Բ�����;

Arizona ˿����Ƶ President and CEO Danny Seiden said the case reflects a broader pattern the ˿����Ƶ has been watching closely.  &�Բ�����;

“Communities across Arizona are working hard to attract investment and create jobs, and that work depends on a process that’s predictable and transparent,” Seiden said. “When development projects that have gone through proper public channels get tied up in legal challenges designed to delay or derail them, everyone loses. This ruling is a good outcome for Marana and a good outcome for Arizona.”  &�Բ�����;

The legal background  &�Բ�����;

The central question was whether the town’s resolution created new policy or simply carried out a framework already in place. The court found that the resolution implemented zoning and land-use parameters established nearly two decades ago through a 2008 ordinance that created the Downtown Marana plan. Because it executed existing policy rather than establishing new policy, the court concluded it was administrative in nature and not subject to referendum.  &�Բ�����;

The plaintiffs had also argued that state law requires all development agreements to go through the referendum process.  

The court rejected that argument as well, consistent with prior Court of Appeals rulings on the same question.  &�Բ�����;

A second case, a similar outcome &�Բ�����;

In a separate but related case, the court also ruled in favor of the Town of Marana in a dispute over referendum petitions tied to a proposed data center project. &�Բ�����;

In that case, the court granted summary judgment affirming the Town Clerk’s decision to reject the petitions after finding they did not strictly comply with Arizona’s statutory requirements governing referendum filings.  &�Բ�����;

The ruling reinforces another key principle: even when a referendum is permitted, the process must be followed precisely. Arizona statutes establish a strict compliance standard to ensure voters have full and accurate information when considering ballot measures. &�Բ�����;

Together, the two rulings draw clearer lines around both when referendums can be used and how they must be executed — distinctions that matter to businesses and communities trying to plan and invest with confidence. &�Բ�����;

The decisions come as the Arizona ˿����Ƶ continues to push for local ballot reform at the Legislature through SB 1429 and HCR 2051, aimed at bringing greater consistency and transparency to the initiative and referendum process at the local level. &�Բ�����;

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As Arizona’s largest private employer, Banner Health is highlighting its outsized role not only in health care, but in the state’s broader economy.

In its newly released 2025 annual report, the Phoenix-based nonprofit health system said it invested $1.1 billion back into the communities it serves, supporting patient care, workforce development, research, and prevention efforts. The report also estimates Banner’s operations generate a $12 billion annual economic impact across Arizona.

The figures reinforce Banner’s standing as one of Arizona’s most consequential institutions for both public health and economic growth.

According to the report, Banner supports 140,000 jobs statewide, including 60,000 direct employees and another 80,000 indirect jobs tied to its operations and related economic activity.

For Arizona’s business community, those numbers underscore how health care systems increasingly serve as pillars of regional economic development, workforce stability, and long-term competitiveness.

“A strong health care system is foundational to a strong economy,” Arizona ˿����Ƶ of Commerce & Industry President and CEO Danny Seiden said. “Banner Health’s continued investment in Arizona’s workforce, communities, and long-term health outcomes demonstrates how essential institutions like this help make our state a place where businesses can grow, families can thrive, and talent wants to live and work.”

That broader economic perspective is reflected in Banner’s nonprofit model, which emphasizes reinvestment in patient care, technology, workforce development, and community-based services across Arizona.

“As a nonprofit health system, every dollar we earn is invested into our care, services, technology, talent and communities, not Wall Street shareholders,” Banner Health President and CEO Amy Perry said in the report’s .

That reinvestment model is especially visible in Banner’s workforce pipeline efforts, a critical issue as Arizona continues to grapple with population growth and a rising demand for health care professionals.

The annual report notes Banner trains more than 1,300 residents and fellows each year, supports 7,000 nursing students annually, and provides hands-on health care career experiences for more than 3,500 high school students through programs such as Camp Scrubs.

Those investments come as Arizona employers across sectors continue to emphasize the importance of talent development and workforce readiness.

Beyond its role as an employer, Banner also detailed major investments aimed at improving health outcomes in Arizona communities.

Among the report’s highlights, the system said it served 70,000 meals to low-income seniors through the Banner Olive Branch Senior Center and distributed more than 1 million pounds of food through its pantry operations.

Banner’s BIG Pink Bus mobile mammography program also screened nearly 1,000 women, with 18% receiving their first-ever screening, expanding access to preventive care in communities that may otherwise face barriers to early detection services.

The report also cites measurable gains in preventive care among Medicaid populations, including a 114% increase in colorectal cancer screenings and more than an 1,100% increase in blood pressure checks year over year.

For employers and policymakers alike, those gains carry implications that extend beyond the health sector.

A healthier workforce can translate into reduced absenteeism, improved productivity, and lower long-term health costs — all factors that influence Arizona’s economic competitiveness.

As the state continues to attract new residents, businesses, and investment, Banner’s report makes clear that health care infrastructure remains a central driver of Arizona’s economic momentum.

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A delegation of Missouri state lawmakers and business leaders visited Arizona last week for a policy exchange focused on economic development, emerging technologies, and regulatory strategy, hosted by the Arizona ˿����Ƶ of Commerce & Industry and the Goldwater Institute.

The visit drew a cross-section of Arizona’s legislative leadership, including House Speaker Steve Montenegro, Majority Leader Michael Carbone, and several members focused on Arizona’s technology and economic development agenda. Representatives from the Arizona Commerce Authority also participated.

Discussions centered on the policy decisions and public-private partnerships that have helped Arizona build a competitive footprint in advanced manufacturing, semiconductors, aerospace, autonomous systems, and emerging technologies.

“Arizona’s growth didn’t happen by accident,” said Courtney Coolidge, executive vice president of the Arizona ˿����Ƶ. “It reflects deliberate policy choices that prioritize certainty, competitiveness, and a regulatory environment where businesses can invest, innovate, and scale. We were glad to share what’s working with leaders from Missouri.”

The exchange comes as the Arizona ˿����Ƶ has been pressing a broader push on digital economy policy, including its recently launched , which aims to strengthen the state’s position in artificial intelligence and emerging technology sectors.

Arizona’s legislative leaders framed the state’s approach as deliberate and long-term. “Arizona has made a conscious decision to lead on innovation rather than wait for other states to set the pace,” said Speaker Montenegro. “That kind of alignment and forward-looking policy environment allows industries to grow and scale here.”

Majority Leader Carbone pointed to the fundamentals underpinning that growth. “Arizona’s success in attracting major investment is tied directly to our focus on advanced manufacturing, infrastructure, and supply chain strength,” he said. “Those fundamentals are critical to sustaining long-term economic momentum.”

Regulatory predictability came up consistently as a deciding factor for businesses. “Companies are looking for certainty,” said Rep. Weninger. “Arizona’s predictable regulatory environment and competitive tax structure give businesses the confidence to invest and expand.”

Sen. T.J. Shope emphasized that the state has worked to distribute economic development beyond major metro areas. “We’ve been intentional about making sure economic development isn’t concentrated in one region,” he said. “Infrastructure, water, and land use policies all play a role in supporting growth across Arizona, including in rural communities.”

“Arizona continues to attract new and emerging industries by staying focused on innovation and targeted economic development,” said Sen. Carroll. “That approach is helping position the state for the next phase of economic expansion.”

Rep. Wilmeth echoed that, pointing to Arizona’s light-touch approach to emerging technology regulation as a competitive differentiator. “We’ve taken a thoughtful approach to emerging technologies by avoiding premature regulation,” he said. “That flexibility allows innovation to develop while still ensuring appropriate oversight.”

The discussion also explored how elements of Arizona’s policy framework could be adapted in other states and how cross-state collaboration might strengthen the broader U.S. economy.

Victor Riches, president and CEO of the Goldwater Institute, framed the stakes broadly. “As emerging technologies continue to reshape industries, policy certainty and deregulation matter more than ever,” he said. “Arizona needs to ensure an environment where innovation can move forward.” The Missouri delegation included state Sens. Travis Fitzwater, Maggie Nurrenbern, Karla May, Barbara Anne Washington, and Jamie Burger, along with a policy adviser to Gov. Kehoe and representatives from the .

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The U.S. Environmental Protection Agency this week finalized a ruling that shields the Phoenix-Mesa region from a more stringent federal air quality classification, delivering a significant win for Arizona businesses and capping a years-long effort to address a problem the state has long argued it didn’t cause.

The EPA determined that the Phoenix-Mesa area would have met federal ozone standards by its August 2024 deadline but for pollution coming in from outside the United States. Under a provision of the Clean Air Act known as Section 179B, the agency will not reclassify the region from “Moderate” to “Serious” nonattainment.

The distinction matters. A reclassification to “Serious” would have significantly tightened the regulatory screws on businesses — lowering thresholds for major emission sources, increasing offset requirements, and expanding air quality control obligations — all while adding complexity to permitting.

The case for the exemption rested on a straightforward argument backed by years of modeling: Phoenix’s ozone problem is largely not of Phoenix’s making. Independent modeling by both the Maricopa Association of Governments and the EPA found that approximately 80 percent of the ozone in the region comes from natural sources or emission sources outside the nonattainment area, including pollution transported from Mexico and Asia, and wildfire smoke.

MAG, the regional planning agency for metropolitan Phoenix, said it had been advocating for the exemption since the Biden administration. It formally submitted its demonstration to EPA in September 2025, and the Phoenix ruling marks the first time the EPA has used its Section 179B authority since Administrator Lee Zeldin rescinded prior guidance that had made the process difficult for states to navigate.

Danny Seiden, president and CEO of the Arizona ˿����Ƶ of Commerce & Industry, called the outcome long overdue. “For decades, Arizona’s businesses have done everything right,” Seiden said. “They’ve invested in cleaner operations, embraced new technology, and helped cut the region’s air pollution by roughly 70 percent since 1990 — all while our economy and population grew dramatically.”

The National Association of Manufacturers weighed in quickly after the ruling, saying the EPA decision gives Arizona’s manufacturers greater flexibility to grow while advancing environmental stewardship. The NAM also called on Congress to build on the momentum by modernizing the Clean Air Act’s permitting process, noting that manufacturers consistently cite Clean Air Act permits as the most burdensome approval process they face.

said the ruling reflects the agency’s broader approach under Administrator Zeldin. “This action is yet another example of the Trump EPA making sure we are not punishing Americans for emissions from countries that do not have our same environmental standards,” Martucci said.

Under the final determination, the Phoenix-Mesa area remains classified as Moderate nonattainment and is not subject to reclassification requirements or the more burdensome permitting and offset requirements that would have come with a Serious designation. All other existing Moderate area obligations remain in effect.

Seiden said the ˿����Ƶ would continue to watch the ruling closely. “We stand ready to vigorously defend this decision against any effort to undo it,” he said.

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