Surprise: Arizona State Land Department Defies Governor Hobbs on Solar Priority Policy

The Arizona State Land Department publicly rejected the idea that it prioritizes solar energy on state lands. The statement came despite a direct order from Governor Katie Hobbs last September.

The clash highlights growing tension between rural ranching interests and the state's push for renewable energy expansion.

Governor's Order Met With Denial

Governor Hobbs issued an executive order in September directing the ASLD to prioritize solar and other renewable energy leases on the more than 9 million acres of state trust land the agency manages.

The order required ASLD to deliver a report within 30 days outlining opportunities to streamline energy infrastructure processes on state lands. It also created a new full-time staff position within the department dedicated to energy infrastructure projects.

"To be clear, ASLD has no policy prioritizing solar over any other use," ASLD said in a statement released Thursday.

The department's denial came after the agency published its required report in April. The 81-page report identified state lands as the biggest focus for building out renewable energy projects. It recommended launching a technical assistance program for developers seeking to site projects on state land.

A Rancher's Fight

The policy dispute gained public attention after Casey Murph, a fifth-generation rancher in Navajo County, brought his case to the U.S. Department of Agriculture.

Murph's family has run cattle on their Arizona ranch since before Arizona became a state. He is now facing potential eviction from his grazing land. A foreign solar company, Orsted, has proposed taking over the land currently leased by Murph for ranching.

Murph submitted a complaint through the USDA's Lawfare Portal asking for federal assistance. He argued that other state land acreage options exist that would not require displacing ranchers from their grazing allotments.

"Arizona's history is deeply tied to ranching. Families came west, raised cattle, managed the land, and helped build the communities that define rural Arizona today," ASLD stated. "Cattle remains one of Arizona's historic 'Five Cs,' and ASLD recognizes the importance of grazing to the state's heritage, rural economy, and stewardship of State Trust Land."

The department said it avoided canceling leases for critical grazing areas. Grazing leases currently overlap with 90% of state trust land, according to ASLD.

The agency told reporters it is in the "very early stages of evaluation" regarding the proposed Orsted solar project.

What This Means for Surprise and the West Valley

Surprise sits in the heart of the West Valley, where solar development has accelerated in recent years. The city and surrounding areas host dozens of solar farms on both private and state land.

Residents in Surprise and nearby communities could see increased solar leasing proposals if the state moves forward with its renewable energy expansion plans. The outcome of the Murph case and the broader policy debate will shape how aggressively the state pursues solar projects on trust lands.

Governor Hobbs also directed the Office of Resiliency, the Residential Utility Consumer Office, and the Department of Economic Security to issue a separate report on expanding renewable energy policy. That report contributed to the recommendations in the April publication.

The Arizona Energy Promise Taskforce, created by Hobbs, was also tasked with developing a policy framework for data centers and other large-load customers. The goal is to minimize impact on ratepayers while accommodating energy demand growth.

The Bigger Picture

The dispute between ASLD and the Governor's office raises questions about executive authority and agency independence. Hobbs' executive order did not explicitly require ASLD to adopt a formal solar priority policy. It did require the department to report on opportunities to expedite energy leases.

Whether that distinction matters politically remains to be seen. The governor's office has not yet responded to requests for comment on ASLD's public denial.

The Murph case continues through federal channels. How the USDA responds could set a precedent for how the state balances competing land uses on its trust lands.