AGP Executive Report

Energy & Costs: AAA Arizona reports Valley gas prices fell 15 cents to an average of $4.57 a gallon for the second straight week, with Cave Creek also dropping again as crude rises. Water & Environment: As Lake Powell levels recede, Colorado River canyon ecosystems are “reemerging” in Glen Canyon, with researchers documenting new plant and wildlife life after decades of drought and inundation. Health & Compliance: Arizona researchers are watching closely as a new marketplace model emerges in the peptide supply sector after supplier exits and tougher scrutiny over “research use only” products. Real Estate: Meritage is converting an Aliso Viejo office site into 61 townhomes after buying the property for $14 million, a sign of continued office-to-housing shifts. Media & Tech: Telemundo Station Group launched a 24/7 Spanish-language FAST streaming news channel covering the Southwest, including Phoenix and Tucson. Semiconductors & Workforce: NSF and Commerce expanded the CHIPS-backed National Network for Microelectronics Education, with Arizona Commerce Authority leading the NNME Southwest node. Sports & Business: A Walmart beef price-fixing settlement is prompting claims by June 30, with eligible shoppers able to submit without proof.

National Infrastructure & Trade: The First Transcontinental Railroad’s 250th anniversary story highlights how rail completion in 1869 reshaped U.S. commerce—faster trips, coast-to-coast goods, and reliable communication—an echo of how big builds still drive regional economies. Defense & Shipbuilding: The U.S. Navy will christen the new USNS Thurgood Marshall (T-AO 211) at General Dynamics NASSCO in San Diego, a reminder that military procurement keeps feeding industrial capacity. Energy Policy: The Trump administration’s push to modernize coal—using Defense Production Act funding—signals continued federal support for coal plants and export terminals, even as critics warn it undermines affordability. Arizona Business & Health: Arizona’s ACA coverage drops raise concerns about more uninsured residents and hospital strain, while a separate DOJ case targets an Arizona firm accused of smuggling illegal SARMs from China. Local Economy & Community: Queen Creek’s rapid growth is colliding with road capacity, and a Valley sports bar is building community by centering women’s sports.

AI & Workflows: Microsoft data says Vermont’s AI tool use is near the bottom nationwide, with Chittenden County leading at 32.3%—a reminder that adoption tracks local job mix and age. Arizona Energy & Industry: A new Mesa data center campus cleared an early zoning hurdle, with NTT proposing closed-loop cooling and water-saving design—another sign of how Arizona’s power and water demands are reshaping industrial planning. Semiconductors: TSMC CEO C.C. Wei says AI demand is so strong the company can only support so much, while he rejects memory-chip style price hikes and warns U.S. chip fabs won’t fix supply quickly. Defense & Logistics: The Army and Lockheed Martin tested a shipping-container-based counter-drone launcher at Yuma Proving Ground, shooting down a mid-sized drone. Local Health & Construction: Sunset Health’s Somerton clinic is preparing to open after permit delays tied to a nearby “no-spray” agreement. Water Watch: Colorado River experts warn Lake Mead and Powell are sliding toward a “system crash” scenario if dry years continue. Arizona Courts/Insurance: Arizona’s AG is again in the spotlight over alleged health insurer price-fixing. Fuel Prices: GasBuddy reports diesel prices in Cochise and Greenlee counties at $4.99 and $5.77 per gallon, respectively, for the week ending May 30.

Data & Water Stress: Tucson activists are pushing back on Project Blue, saying the $3.6B data center campus used more than 500,000 gallons of public water in a month, as residents weigh drought fairness against AI growth. Heat Impacts: A new look at Phoenix-area data centers finds waste heat can mix into the air near neighborhoods, raising concerns for local cooling burdens and public health. Colorado River Pressure: Experts warn Lake Mead is barreling toward a “system crash” without faster cuts, while Arizona and other states keep negotiating water-sharing options. State Policy & Utilities: Arizona’s Corporation Commission is responding to an APS billing error affecting customers, and regulators are weighing an electric utility request for a 14% increase. Mining & Energy Supply Chains: Resolution Copper’s land exchange is complete, moving the Arizona project into enabling works and permitting toward potential copper output later this decade. Agriculture Biosecurity: Navajo officials are reviewing screwworm response plans after Texas detections, a reminder that livestock disease threats can quickly ripple into Arizona’s ranch economy. Healthcare & Competition: Arizona AG Kris Mayes sued eight major health insurers over alleged price-fixing, including claims about an “algorithm” driving underpayment. Construction & Growth: Harvest Prep’s new San Luis campus is delayed to January 2027 due to soils, permitting, and traffic-light cost issues. Local Business: Portland Leather Goods opened its 15th store in Gilbert, highlighting continued retail expansion in the Valley.

Colorado River Water Risk: Experts warn the basin could hit a “system crash,” with Lake Mead and Lake Powell losing usable storage if levels fall far enough—raising pressure for faster conservation. Local Education & Construction: Harvest Preparatory Academy’s new San Luis campus is still under construction, but the opening slips to January 2027 due to soils/geology work and traffic-permit costs. Data Centers & Water Tension: Tucson-area residents protest Beale Infrastructure’s data center drilling, arguing groundwater could be drained without meaningful consent. Energy Policy & Jobs: President Trump says the Defense Production Act will fund $700M for coal plant upgrades and new projects, including Arizona-linked facilities, framing it as energy security. Retail Expansion: Trader Joe’s is set to open in Desert Ridge Marketplace in north Phoenix, taking over former Joann space. Tech/Auto Dealmaking: Jeff Bezos-backed Slate Auto reportedly lines up with Carvana for sales ahead of its EV pickup launch. Wildfire Safety: Stage 1 fire restrictions are in effect across parts of the U.S. Forest Service and local agencies. Arizona Community Spotlight: Girls Change the World Summit in Tempe recognized Arizona teen leaders with scholarships and mentoring.

Electricity Costs Watch: A new U.S. map shows residential power prices rising fast in parts of the country, with the biggest year-over-year jumps in the District of Columbia (+22.5%) and several East Coast states; the report flags grid investment and demand growth, including from AI data centers, as key drivers. Utility & Regulation: In Tucson, the Arizona Corporation Commission is weighing APS billing fallout after an error left some customers facing unexpected charges tied to budget billing and multi-property accounts, while TEP’s earlier rate request was quietly lowered after interveners raised affordability and data-center concerns. Energy Policy: President Trump’s Defense Production Act push is backing coal plants and modernization efforts, including Arizona listed among the states that could receive support. Construction & Permitting: Arizona lawmakers signed a new law aimed at cutting unnecessary delays in home construction licensing, with penalties for intentional obstruction. Public Health & Safety: Arizona also enacted a crackdown on nicotine products marketed to kids, adding licensing, recordkeeping, and stronger enforcement. Local Growth: San Tan Valley adopted its first full-year budget, setting a roughly $91M spending ceiling as it prepares to take over services from Pinal County.

Energy & Utilities: Trump’s $700M coal revival plan—using the Defense Production Act—could funnel money to plants tied to the Mountain West, including Arizona Electric Power Cooperative, while critics warn it may raise rates and harm health. Water & Infrastructure: KJZZ reports the federal Colorado River plan is still in limbo, with a new federal framework expected later this summer as states miss deadlines. Public Policy & Industry: Arizona’s geothermal push got a boost as House lawmakers advanced standards for leasing and permitting on federal lands, aiming to speed projects. Construction & Broadband: “The Buildout” notes Wire 3’s $53M expansion into Florida, a reminder of how broadband buildouts keep accelerating nationwide. Tech & Compliance: Arizona gaming regulators are tightening scrutiny of casino sweepstakes, focusing on disclosures, age checks, and whether promotions cross into unlicensed gambling. Transportation & Surveillance: A viral Arizona highway video raises alarms about disguised license-plate camera setups, with AZDOT reportedly asking CBP to stop using lookalike barrels that could confuse drivers. Fuel Prices: GasBuddy data shows Arizona prices easing in late May, with Graham County midgrade and premium deals standing out.

Energy & Land Use: The Bureau of Land Management opened a 30-day public scoping period on leasing about 79,000 acres for oil and gas in northern Arizona, including parcels near the Utah-Nevada border, with stipulations promised to protect key resources. Broadband & Consumer Tech: Midtown Tucson residents say a multi-day outage left them scrambling for answers after Quantum Fiber service went down for days, highlighting how fragile connectivity can hit work, health and home security. Semiconductors & Supply Chains: TSMC CEO C.C. Wei said the company is working hard to avoid becoming an AI chip bottleneck, while also signaling he’d “like” to hike prices if conditions allow. Utilities & Affordability: Tucson Electric Power expanded bill relief through Power AZ, offering one-time help for working families even if they miss traditional low-income thresholds. Workforce & Local Industry: Flowing Wells students got hands-on auto internships after community fundraising saved the program, partnering with local shops to keep training pipelines alive. Infrastructure Planning: ADOT will host a June 17 open house on the SR 347 improvement project in Maricopa, starting with pavement rehab this summer. Agriculture Risk: USDA confirmed a New World screwworm case in a Texas calf, triggering quarantines and raising concerns for cattle markets and livestock movement. Defense & Training: U.S. Marines’ 13th Marine Expeditionary Unit completed realistic urban training across the Southwest to validate raid, recovery and crisis-response readiness. Sports Business: The Arizona Cardinals released kicker Joshua Karty and signed safety Isaiah Oliver, reshaping their roster as the NFL season approaches.

Arizona Energy & Growth: Arizona Gov. Katie Hobbs and Georgia Gov. Brian Kemp both tied economic development to reliable power infrastructure at the Edison Electric Institute conference, underscoring how energy policy can make or break new manufacturing and data center investment. Healthcare Tech & Operations: Lofty rolled out an AI-powered Client Transaction Portal in Phoenix, aiming to cut the chaos of real estate paperwork by giving clients real-time updates and e-signing without exposing back-office systems. AI for Sports Training: Whistle Performance launched “Sandbox,” letting coaches build custom athlete dashboards in seconds instead of spreadsheet-heavy workflows. Mining & Clean Energy: MAX Power Mining highlighted natural hydrogen plans tied to AI power demand, positioning its Lawson system as part of the next wave of baseload energy. Housing & Markets: Realtor.com data shows U.S. home asking prices falling at the fastest pace in nearly a decade, with affordability and high mortgage rates still weighing on demand. Local Business & Finance: New Generation Consumer Group said it will close its Reg A offering by June 10 and pivot to non-dilutive private lending for growth.

Phoenix Real Estate: One Camelback in uptown Phoenix has started pre-leasing luxury apartments after years of delays, with move-in dates in early September and rents reported from about $1,600 to $10,000. Colorado River Water Markets: A new desalination-and-reuse interstate exchange framework was signed near Carlsbad, but Imperial Valley agriculture leaders are watching closely for what it could mean for water rights and farming economics. Agriculture Biosecurity: USDA confirmed a New World screwworm detection in a Texas calf, the first in U.S. livestock in decades, and says Texas and federal teams are moving to contain and eradicate it. Data Centers & Water Rules (Tucson): Tucson is set for a public hearing on proposed data center regulations, including limits on using potable water for cooling and added notification requirements. Public Safety for the AI Buildout: Rural Metro Fire is positioning as a specialized responder for Arizona’s solar, battery storage, and data center boom as fire and EMS needs scale up. Local Infrastructure Pressure: Queen Creek officials say growth is outpacing transportation upgrades, with major road projects taking time and limited transit options for residents. Cybercrime Disruption: DOJ and private industry coordinated “Disruption Week,” sharing info that helped freeze millions in crypto tied to scam accounts. Workforce & Training: EVIT says it’s offering $2 million toward transportation costs to keep students accessing career and technical education.

Public Health: Arizona reported its first 2026 death from hantavirus pulmonary syndrome, tied to the Sin Nombre strain spread by deer mice—raising stakes for agricultural and rural exposure awareness. Education & STEM: Sonoran Science Academy Tucson notched back-to-back MESA state championships and sent students to national engineering competition, while a Lamar High School student earned recognition at ISEF. Aviation & Travel: American Airlines “seasonally adjusted” two Phoenix Sky Harbor routes amid higher jet-fuel costs, signaling continued pressure on airfares and fees. Real Estate Development: Greystone arranged $141M construction financing for a 245-unit luxury tower in Scottsdale, with a planned 2028 opening. Energy & Agriculture: USDA and Texas continue a multi-front defense against the New World screwworm as detections near the border prompt tighter controls. Tech & Drones: ZenaTech posted a 640% revenue jump in Q1 2026, driven largely by its drone-as-a-service push. Legal/Healthcare Costs: Arizona AG Mayes sued insurers over an alleged price-fixing “cartel” that underpaid providers. Climate & Water: A new analysis says Arizona is getting drier faster than any other state, with major drought exposure and dryness risk ahead.

Border & Logistics Enforcement: U.S. Border Patrol’s “Operation Checkmate” in Arizona arrested 52 commercial vehicle operators, including 36 truck drivers; officials say 30 were Indian nationals and many had invalid Employment Authorization Documents, with deportations expected. Mining & Supply Chains: A Kingman-area silver mine (Hackberry) sold for $10 million, underscoring renewed interest in Arizona ore as manufacturers and exploration firms chase domestic mineral supply. Energy & Utilities: The Arizona Corporation Commission reminded customers of the summer electric shutoff moratorium (June 1–Oct. 15), with APS/Tucson Electric/UNS opting not to disconnect during extreme heat periods. Higher Ed & Construction: The University of Arizona cut a planned dorm height from 19 stories to 9 while increasing bed capacity to 1,300, keeping a fall 2028 opening target. Real Estate & Office Leasing: Newmark arranged a $103 million sale of Phoenix Education Partners’ headquarters, fully leased long-term to the University of Phoenix. Retail Growth: Whole Foods opened applications for its 2026 Local and Emerging Accelerator Program (LEAP), aiming to mentor and potentially fund early-stage brands.

Semiconductor Expansion in Peoria: Amkor is buying 67 acres of Arizona State Trust land for nearly $33M to expand its Peoria footprint, with city projections of about 3,000 jobs by 2028. State Housing & Property Oversight: Arizona Gov. Katie Hobbs signed SB 1479 to crack down on deed fraud, adding an opt-in alert system, stricter penalties for false filings, and ID requirements for in-person recordings. AI, Energy, and Data Centers: A crowdsourced effort led by Erin Brockovich says 6,615 people have reported AI data centers nationwide, underscoring local fights over power and water demands. Logistics Costs: A transportation pricing index hit a record growth rate in May as capacity tightened and freight rates surged. Commercial Real Estate: Metro Phoenix’s biggest May deals included a $103M University of Phoenix office sale and a $95.25M Mesa apartment transaction. Healthcare Business Moves: LTC Properties announced a $54M SHOP acquisition in Phoenix, adding MorningStar Senior Living to its seniors housing portfolio.

Utility Costs & Consumer Help: The Arizona Corporation Commission is urging APS and SRP customers to plan now for higher summer bills, noting a June–October disconnection moratorium for regulated customers while they set up payment arrangements. Regulatory Fight Over Renewables: The ACC voted to let its Office of General Counsel explore actions after the AG disapproved parts of the Renewable Energy Standard and Tariff repeal package, keeping pressure on Arizona’s energy rulemaking. Healthcare Antitrust: Arizona AG Kris Mayes sued MultiPlan and eight major insurers, alleging a shared algorithm “price-fixing” scheme that underpaid out-of-network providers and drove up patient costs. Affordable Housing + Preservation: A Flagstaff effort aims to buy the historic El Pueblo Motor Inn for Habitat for Humanity’s starter-home program, targeting 19 units while preserving the Route 66 exteriors. Manufactured Housing Policy: Cavco hosted Virginia Gov. Abigail Spanberger after Virginia signed zoning reforms that expand where manufactured homes can be placed and limit local restrictions. Local Construction Update: Tucson’s Santa Rita Park renovation is nearing completion, with an August opening now targeted. Tourism Upgrades: Sabino Canyon in Tucson is set for major fall renovations, including shade structures, trail updates, restroom art, and a larger visitor center plan. Manufacturing & Housing Deal: Berkshire Hathaway agreed to buy homebuilder Taylor Morrison for $6.8B, with Taylor Morrison headquartered in Scottsdale.

Retirement & Finance: Arizona AG Jay Jones joined a 24-state coalition opposing a Trump administration proposal that would loosen retirement-plan rules and steer more 401(k) money into riskier alternatives like crypto and private credit. Energy Costs: A new map shows electricity prices jumped sharply in parts of the U.S., with grid investment and demand pressures cited—an issue that matters for Arizona households and industry planning. Local Business & Services: Liberty Mutual rolled out a ChatGPT-based auto insurance quoting app in Arizona and other states, signaling insurers’ push into AI-driven customer acquisition. Housing & Construction: Berkshire Hathaway agreed to buy homebuilder Taylor Morrison in a deal valued around $8.5B, a move that could ripple through the national housing supply chain. Agriculture: USDA announced the Great American Cotton Plan after meeting with Arizona farmers, aiming to restore cotton profitability and boost domestic textile manufacturing. Arizona Water/Industry: A precision machining firm deal is in motion: PMGC Holdings signed a non-binding LOI to acquire a 76% stake in an Arizona-based aerospace/defense/semiconductor supplier. Mining: Corcel Exploration reported strong early drill results at its Yuma King Project, including copper-gold-silver-molybdenum mineralization. Food Security: Summer meals return for Yuma and La Paz youth through USDA’s Summer Food Service Program.

Housing & Construction Deal: Berkshire Hathaway agreed to buy Scottsdale-based Taylor Morrison for about $8.5B enterprise value ($72.50/share), its first major takeover since Warren Buffett stepped down—an explicit bet on scaling site-built homebuilding. Public Safety & Health Tech: TSA is seeking contractor support to modernize and maintain biometric identity and vetting systems tied to enrollment and credentialing across transportation security. Cancer Research: ASCO reports daraxonrasib, an oral targeted pill for metastatic pancreatic cancer, nearly doubles survival versus chemotherapy in a phase 3 trial, with fewer severe side effects. Water & Agriculture Tech: Arizona researchers are using OpenET-style satellite tracking and field tools to help farmers and water managers measure crop water use as the Colorado River faces long-term stress. Workforce & Immigration: New research links intensified ICE activity to reduced capacity and job losses in the childcare sector, hitting immigrant women hardest. Local Justice: A Tucson man was sentenced to 40 years for producing child pornography, with federal prosecutors citing use of phone, internet, and distribution.