AGP Executive Report

Energy & Grid Reliability: The U.S. Department of Energy authorized emergency backup power for 17 states via the Southwest Power Pool as extreme heat spikes demand, with Arizona among the affected customers and the order set to run until Aug. 3. Water & Industry Risk: A new report says Lake Powell and Lake Mead hit the lowest combined level on record, underscoring how Colorado River shortages keep tightening the region’s water-dependent economy. Cattle Supply Chain: USDA plans a phased reopening of southern ports for Mexican livestock imports, starting with Douglas, Arizona, after screwworm controls—an effort aimed at easing beef supply pressure. Regulation & Fossil Fuel Permitting: Arizona and other states urged FERC not to expand blanket permitting for natural gas pipelines, warning it could raise costs and pollution by reducing public review. Semiconductor & Jobs: Amkor reported strong results and signaled major 2026 spending for chip packaging and testing, while Arizona’s tech ecosystem continues to draw attention as AI and semiconductor demand accelerates. Workforce & Education: NSF launched CyberAICorps Scholarship for Service to grow AI-ready cybersecurity talent, and 24hourEDU expanded NMLS-approved mortgage continuing education to all 50 states. Local Business: A Wickenburg golf training facility was sold and rebranded as White Rose Golf & Training Center, keeping TrackMan and junior programs in the community.

Semiconductor Supply Chain: Nvidia and Amkor struck a $1.5B, multi-year deal to expand advanced chip packaging in Arizona, aiming to diversify supply beyond Asia and strengthen U.S. AI infrastructure. Energy & Utilities: APS and SRP both set all-time peak demand records during extreme heat, underscoring how fast Arizona’s load is growing and why grid reliability is a top business issue. Border & Livestock Trade: USDA will reopen the Douglas, Arizona, cattle port to Mexican imports on Aug. 24, with other crossings possibly later, contingent on New World screwworm safeguards and inspections. Local Food Costs: Tucson restaurants say supplier prices are rising again—especially beef and produce—while utilities, repairs, and other operating costs add pressure on menu affordability. Real Estate Dealmaking: Citizens Capital Markets & Advisory advised the sale of Scottsdale’s Jason Mitchell Group to Keller Williams, expected to close in Q3 2026. Consumer Protection: AZ PIRG says robocalls are still a major problem in Arizona and urges stronger FCC action despite existing blocking requirements. Infrastructure Progress: ADOT’s I-10 Wild Horse Pass Corridor Project is in final phases, including new Gila River bridges and major lane shifts. Business Expansion: TelicX named a new managing director and unveiled A.D.A.M., an AI advisor for franchise car dealers built to use verified dealership data. Workforce/Innovation: University of Arizona hit a record 372 invention disclosures in the past year, with dozens of patents, licenses, and new startups. Community & Growth: Center Court Pickleball opened a new Scottsdale facility, adding 13 indoor courts and more year-round play.

Critical Minerals & Water: EVelution Energy says it has confirmed substantial groundwater resources for its planned solar-powered cobalt processing facility in Yuma County, reducing a key project risk and supporting possible expansion. Livestock & Border Trade: USDA announced a phased reopening of southern ports for Mexican cattle imports starting Aug. 24, with Douglas, Arizona first, and full inspections for New World screwworm safeguards. Arizona Economy & Industry: A new Arizona State University bachelor’s degree in content creation aims to formalize influencer careers, reflecting the growing creator economy. Semiconductors Supply Chain: An op-ed argues Arizona’s CHIPS-driven fab boom should also focus on reshoring the less-visible supplier ecosystem that keeps advanced manufacturing running. Energy & Permitting Politics: A multistate AG lawsuit challenges a wind farm freeze, pushing for required national security reviews to resume. Local Business Leadership: Realty of America appointed Kimberly Ryan as EVP of Strategic Growth, citing her role in scaling the company’s Arizona agent base. Food & Community: Wildflower marked its 30th anniversary with a $37,329 donation to Child Crisis Arizona, continuing long-running local support.

Energy Reliability: The U.S. Energy Department ordered Southwest Power Pool to tap idle power sources across parts of 17 states, including Arizona, as heat-wave conditions raise the risk of blackouts and rotating outages. Home Electrification Policy: Arizona’s Efficiency Arizona rebate program is tightening: gas-to-electric “fuel switching” ends under new federal DOE rules, with applications due Aug. 1 before the change. Livestock & Trade: USDA announced a phased restart of U.S.-Mexico cattle imports tied to New World screwworm safeguards—starting Aug. 24 at the Douglas, Arizona, port of entry, with full USDA inspections for every animal. Water Management: Federal agencies are preparing the post-2026 Colorado River operations plan, with Arizona facing potentially significant cutbacks as states can’t agree on shortage sharing. Semiconductors & AI Supply Chain: AMD laid out a server roadmap to 2030, targeting new EPYC chips for AI and data centers, while Amkor and NVIDIA’s $1.5B packaging push signals continued Arizona-relevant momentum in advanced chip manufacturing. Creator Economy (Education): ASU launched a Bachelor of Arts in Content Creation aimed at training influencers and digital storytellers—another sign of how Arizona’s education and tech industries are converging.

Energy & Grid Stress: Heat waves plus data-center demand are pushing U.S. power grids toward “tipping points,” with emergency alerts and requests to boost generation—Arizona utilities and regulators are watching closely as reliability strains. Electricity Rates & Data Centers: SSVEC CEO Jason Bowling says new growth should cover its own infrastructure costs, urging regulatory guardrails so existing ratepayers don’t subsidize large data users. Water & Colorado River: Southwest cities are stepping up conservation as Lake Powell hits record-low levels, raising concerns about “dead pool” impacts on power and downstream water. Home Energy Rebates: Arizona households have until Aug. 1 to apply for federal rebates for gas-to-electric appliance swaps before September rule changes. Solar Manufacturing Gap: A new look at the solar boom highlights a key missing U.S. component—cell production—despite new module factories. Food Safety: FDA linked a Texas-linked egg recall to 98 salmonella illnesses across 17 states; consumers are urged to check recalled cartons. Public Health/Consumer: Amy’s Kitchen recalled 184,200 cans of organic lentil soup over a pull-tab seal defect. Arizona Economy & Jobs: Arizona Commerce Authority reports fiscal 2026 topped $109B in investments and points to growth in semiconductors, aerospace/defense, and biotech. Workforce & Education: ASU launches a content-creation major aimed at training future influencers, while its counseling training center expands low-cost appointments statewide.

Energy & Grid Resilience: The Air Force signed a 10-year support deal with Arizona State University to help military installations boost energy resilience, improve utility monitoring, and expand planning support. Residential Power Storage: New federal data show U.S. home battery installs are surging, with Arizona among the leading states as homeowners chase bill savings and outage protection. Education & Workforce: ASU launched a Bachelor of Arts in “Content Creation” through the Cronkite School, aiming to train students for the creator economy. Food Safety: More than 19 million eggs were recalled after a Salmonella outbreak tied to Midwest Poultry Services; separate from that, Amy’s Organic Lentil Soup was recalled over a can pull-tab manufacturing issue. Agriculture & Trade: USDA will restart Mexican cattle imports in phases, with Douglas, Arizona reopening Aug. 24 as part of screwworm biosecurity controls. Business/Deal Watch: Paramount agreed to pause its Warner Bros. Discovery merger until lawsuits are resolved, with Arizona included in the multi-state legal challenge.

Food Safety: The FDA says a salmonella outbreak tied to recalled eggs has sickened at least 98 people and hospitalized 26 across 17 states, including Arizona, with investigators pointing to Midwest Poultry Services. Consumer Alerts: Amy’s Kitchen recalled about 184,000 cans of Organic Lentil Soup in 27 states, including Arizona, due to a pull-tab sealing issue. Energy & Costs: Arizona gas prices kept climbing, with regular averaging $4.30 a gallon, as crude prices rose amid Strait of Hormuz volatility. Power Grid Pressure: Extreme heat is forecast to hit the Southwest and Arizona hard, with Phoenix projected near 117°F, raising electricity demand and stressing grids. Agriculture & Trade: USDA will phase reopening of Mexican cattle imports starting Aug. 24 through the Douglas, Arizona port, as screwworm controls improve. AI Infrastructure: A new push for smaller “home” data centers is emerging as AI demand collides with local resistance to large facilities. Semiconductors: Air Liquide plans a $150M Idaho industrial gas facility to supply ultra-pure gases for advanced chip manufacturing. Policy & Industry: A House bill would fast-track federal approval for certain national-security interstate oil and gas pipelines, limiting state permitting. Tech Safety: Anthropic released a detailed safety card for Claude Opus 5, including results from simulated enterprise-network attack attempts.

Cattle & Border Trade: USDA will resume Mexican cattle imports in phases, starting Aug. 24 with the Douglas, Arizona port, with full USDA inspections for New World screwworm and later openings planned for Santa Teresa and Columbus, contingent on Mexico’s joint action plan. Agriculture Tax Ruling: The Arizona Supreme Court says permanent crops like orchard trees and vineyard vines must be valued using the same income-based method as farmland, blocking separate market-value assessments that can raise tax bills. Right-to-Repair: The FTC and multiple state attorneys general secured a Deere (John Deere) settlement requiring diagnostic and repair tools be available to farmers and independent shops, not just authorized dealers. Water & Western Industry: Federal officials are preparing “Post-2026 Operating Guidelines” for Colorado River management after current rules expire, with major stakes for Southwest farms and cities. Semiconductors & Courts: Onsemi beat a shareholder suit in Arizona federal court over claims tied to long-term supply contract disclosures. Public Health: A study finds lithium in household drinking water is a widespread, persistent exposure source across Western Tribal communities, linking water to urinary lithium levels.

Transportation & Construction: ADOT will host a virtual public information meeting Aug. 5 on the I-10 Wild Horse Pass Corridor Project, covering the 26-mile corridor and design/construction work on the 11-mile segment between Loop 202 and the Gila River. Public Health: The U.S. has logged 2,318 measles cases in 2026—surpassing all of 2025—with 93% of patients unvaccinated, as Arizona remains among states seeing outbreaks. Energy & Consumer Costs: AAA says gas prices jumped 15 cents to a national average of $4.09, with crude volatility tied to the Strait of Hormuz. Food Safety: Amy’s Kitchen recalled Organic Lentil Soup (Light in Sodium) due to a potential spoilage risk from a can “easy open tab” defect. AI Policy: States are moving fast to regulate AI chatbots, with dozens of bills introduced nationwide and new rules focused on disclosure, age access, safety, data protection, and enforcement. Local Industry/Environment: Arizona AG Kris Mayes heard community concerns about biosolids in Yuma, after an ADEQ inspection found no violations at the cited processor. Tech & Manufacturing: NVIDIA and Amkor announced a $1.5B deal to expand advanced semiconductor packaging and test capacity in the U.S.

Semiconductor Supply Chain: Nvidia and Amkor ink a $1.5 billion, multi-year advanced chip packaging and test deal, with Arizona capacity in the mix—another sign the AI buildout is reshaping local manufacturing. Energy & Utilities: EPA approved SRP to keep operating an unlined coal ash pond at the Coronado Generating Station, a move critics say lets toxic waste continue while more paperwork is prepared. Data Center Power Politics: The White House expanded its Ratepayer Protection Pledge and Congress advanced a bill aimed at stopping large data centers from pushing grid upgrade costs onto utility customers. Arizona Economy & Jobs: A Common Sense Institute labor market read says Arizona still leads on annual job growth, even as unemployment and labor force participation soften. Food Industry Watch: Salad and Go rolled out “Menu 2.Go” while the broader cyclospora outbreak investigation continues; separately, Amy’s Kitchen recalled 184,200 lentil soup cans over a pull-tab seal defect. Public Safety & Construction: ADOT and city crews announced multiple roadway closures and lane restrictions, including SR 51 northbound narrowing for about seven weeks starting July 27. Mining Oversight: Voters are paying attention to the Arizona State Mine Inspector race after coverage explained what the role does and why it matters for mine safety.

Colorado River Water & Power: Lake Powell and Lake Mead hit historic lows, threatening water supplies and electricity generation across the Southwest. Energy Grid Resilience: Wildfire smoke is emerging as a real operational risk for the power sector, cutting solar output and complicating grid management. Arizona Utilities & Rates: Arizona’s utility regulators moved to repeal energy efficiency standards, a shift that could affect ratepayer savings and future demand planning. Onshore Wind Permitting: State AGs joined a legal fight against a federal wind farm freeze, arguing stalled national security reviews are blocking more than 155 projects. AI Data Centers & Local Politics: Democrats are leaning into backlash over AI data centers—an issue resonating in Arizona as communities weigh jobs against water, land, and power strain. Housing Market Shift: A new housing outlook warns the next decade may be defined by fewer buyers, not fewer homes, as deaths begin to outnumber births. Public Health: West Nile virus cases are rising fast, with Arizona reporting all confirmed 2026 deaths. Local Business & Growth: Planet expanded its Southwest mortgage retail footprint by adding a Tempe-area branch manager. Manufacturing Tech: Fluree AI launched to help enterprises use governed knowledge for automation, aiming to reduce data silos. Community Spotlight: Center Court Pickleball opened a new Scottsdale indoor facility, adding courts and training space.

AI Grid Resilience: ASU won a U.S. Department of Energy Genesis Mission grant to build an AI system that stress-tests thousands of power-grid scenarios and helps prioritize the most critical reliability fixes. Water & Agriculture: A new Arizona tri-university study says about 95% of precipitation evaporates back to the atmosphere, pushing the state toward better recharge and water-capture strategies. Border Trade & Local Economy: Nogales is weighing an expansion of the DeConcini port of entry that could nearly double vehicle lanes and add more pedestrian space—potentially reshaping downtown commerce. Workforce Mobility: A Greater Phoenix initiative (“Phoenix Jobs That Mobilize”) is using transferable-skill research to connect employers in healthcare, construction, and advanced manufacturing with workers and career pathways. Heat-Ready Homes: Tucson A/C crews say one missed maintenance step—especially dirty filters—can trigger failures during peak temperatures. Retail Expansion: Sprouts is opening a new Phoenix flagship store and corporate headquarters at City North, signaling continued nationwide growth. Semiconductor Investment Watch: TSMC’s latest results highlight strong AI-chip demand while noting margin pressure from its expanding U.S. buildout, including major Arizona spending.

Semiconductors & Manufacturing: TSMC says it’s adding another $100B to its Arizona chip buildout, expanding Phoenix-area capacity with more advanced logic fabs and advanced packaging as AI demand keeps outpacing supply. Aerospace Supply Chain: AIRO Group’s Phoenix avionics/drone manufacturing facility (consolidated with Aspen Avionics) earned AS9100D certification, a quality milestone aimed at supporting broader aerospace and unmanned programs. Water & Energy Infrastructure: Lake Powell’s continued shrink is forcing marinas and boat ramps to adapt, underscoring how the Colorado River crisis is reshaping recreation and local operations. Environmental Regulation: The Trump administration is rolling back endangered species habitat protections, with states arguing they can manage wildlife while experts warn most states lack the legal tools to replace federal safeguards. PFAS Drinking Water: A coalition of attorneys general, including Illinois’ Raoul, is pushing back on EPA’s proposed PFAS rollback, arguing it would weaken testing and treatment requirements for “forever chemicals.” Arizona Local Development: Arizona’s Marana Downtown entertainment district got the green light from the state Supreme Court to move forward with a major mixed-use project after referendum-related legal fights. Arizona Politics: Trump-backed Republicans swept key Arizona GOP primaries, setting up November matchups against Democratic incumbents. AI for Science: NSF announced $83M for integrated data systems to help researchers use AI-ready infrastructure, tying into broader U.S. AI research and “Genesis Mission” efforts.

Semiconductor boom in Arizona: Congressman Abe Hamadeh praised TSMC’s added $100B push for advanced chip manufacturing and packaging, saying it could create ~80,000 jobs over five years and help Arizona produce a major share of leading-edge AI chips. Mining & transport safety: A uranium ore haul truck rolled over on the Navajo Nation; officials said the cargo container was empty and there was no public hazard, but the crash adds to calls for tougher oversight of uranium trucking routes. Data centers & water pressure: A national debate over AI data centers is intensifying as communities push back on power and water use; the reporting highlights greener cooling needs as hyperscalers expand. Food supply scrutiny: A cyclospora outbreak continues to raise questions about produce safety and how quickly regulators identify sources, with lettuce supply chains still under the microscope. Local development: An 18-acre site near Arizona Farms Boulevard sold for $2.7M with plans for housing plus industrial and retail space, signaling continued growth along the Hunt Highway corridor. Politics shaping business climate: Arizona GOP primaries advanced nominees for governor and key statewide offices as Trump-backed clout faces a House-majority test.

Broadband & Telecom: IdeaTek is entering Tucson after the City Council approved a right-of-way license, with plans to invest $300 million for a fiber-to-the-premise network targeting up to 8 gig speeds and symmetrical service. Energy & Grid Reliability: Avantus’ Aratina 1 solar-plus-storage project has reached commercial operation in California, a 200 MW/500 MWh facility now operating under long-term PPAs with community choice aggregators. Construction & Local Growth: Sedona is setting aside up to $150,000 for post–Pocket Fire tourism recovery, including $50,000 for crisis messaging as SR 89A reopens. Public Safety & Transportation: Arizona’s commercial vehicle enforcement ramped up with a three-day operation near Payson that found 350 violations, putting 13 vehicles and 23 drivers out of service. Cybersecurity & Compliance: CISO Global expanded its TiGRIS FedRAMP-certified GRC platform with more compliance automation and plans to add generative AI capabilities. Semiconductors & Jobs: TSMC’s Arizona buildout continues to draw attention as the company accelerates investment tied to AI chip demand. Weather & Infrastructure: A Southwest grid operator warned of potential rolling blackouts across 14 central states as heat drives higher demand.

Arizona Politics: Arizona Republicans pick nominees Tuesday to challenge Gov. Katie Hobbs, with U.S. Reps. Andy Biggs and David Schweikert vying for the GOP gubernatorial slot and the party also selecting candidates for secretary of state and attorney general. Semiconductors & Manufacturing: TSMC says it’s accelerating its Arizona buildout for AI demand, adding another $100 billion to bring total U.S. investment to $165 billion and expanding plans for fabs, advanced packaging, and R&D. Antitrust & Media: A federal judge temporarily blocks the Paramount–Warner Bros. merger for at least two weeks as states argue it would reduce competition and raise costs, with Arizona AG Kris Mayes among the challengers. Defense & Drones: Lockheed Martin unveiled MORFIUS X-Rotor, an anti-drone system designed to neutralize more than 50 drones per flight. Energy & Infrastructure: Marana clears a final legal hurdle to move forward with its long-awaited downtown entertainment district. Public Safety & Health: Arizona’s DEA moves to temporarily control 7-OH, a kratom-related substance gaining attention online, as a Kingman woman’s family describes a severe reaction. Agriculture & Trade: Scoular, an agricultural supply chain firm, agrees to pay more than $10M to resolve a Justice Department foreign bribery case tied to U.S.-Mexico shipments.