Title
City of Phoenix 2025 Energy Access Plan - Citywide
Description
This report presents to the City Council the 2025 Energy Access Plan, which outlines the actions to reduce energy burden for households that are disproportionately impacted by energy costs. The actions in the plan are designed to address energy affordability and protect residents from extreme indoor heat. Unaddressed energy burden can pose serious health risks, including worsened respiratory illnesses, increased stress and anxiety, housing insecurity, and, in extreme cases, indoor heat-related death. The plan includes critical actions that work toward the Council-approved target to enhance Phoenix's participation in low-income energy affordability programs to address energy access, prioritizing public health and safety.
Staff are seeking approval of the 2025 Energy Access Plan.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
Energy Burden
Energy poverty describes a situation in which a household lacks access to, or cannot afford, the energy (electricity and gas) required for essential needs such as cooling, heating, and cooking. The City of Phoenix measures this through an energy burden calculation, which is the percentage of a household's income that is spent on home energy bills. Households that spend more than six percent of their income on energy bills face a high energy burden. Phoenix's data analysis shows that 14 percent of households in Phoenix experience high energy burden (82,345 out of 584,114). Of those households, 96 percent are low-income. Energy burden can also be reflected in residents' lived experiences. For example, delaying the use of air conditioning to avoid rising costs, receiving disconnection notices, and cooking outdoors to prevent heating the home.
Indoor Heat and Health
Phoenicians depend on cool indoor spaces in their home for safety and comfort. Insufficient indoor cooling at home can pose serious physical and mental health risks to residents. Impacts include worsened respiratory conditions, and increased stress and anxiety. These health impacts can negatively impact physical health and school/work performance. In 2024, Maricopa County reported 138 indoor heat-related deaths, of which 88 percent occurred in homes with air conditioning (AC) present but not functioning, not in use, or not connected to electricity.
Low-Income Households and Energy Burden
Low-income households, which make up the vast majority of energy-burdened households, are at a disproportionate risk of the negative impacts of high energy prices. Insights from nearly 200 participants recorded in the Office of Sustainability's Energy Access Plan Community Engagement Report (Attachment A) revealed the impact of energy burden. High energy bills forced many participants to make the difficult decision between choosing which essential bills to pay such as rent, medical, and grocery bills. This poses a barrier to some residents' ability to repair, replace, or install AC units. Because of Phoenix's extreme heat, low-income households may prioritize paying their energy bills over other necessities to cope with the heat. This can contribute to housing instability, increasing the risk of eviction and displacement for missed or late rent payments. On average, low-income households in Phoenix wait four to seven degrees Fahrenheit longer to turn on their AC than high-income households. Nearly 70 percent of responses on the community-wide Climate, Energy, and Food Action Plan survey indicated that participants have limited their use of their heating/ cooling systems to uncomfortable or inconvenient levels to save money. Recognizing that a high energy burden on a financially vulnerable population can compound health and safety risks, the 2025 Energy Access Plan is aligned to support energy affordability, particularly for low-income community members.
Low-Income Energy Programs
Low-income energy programs that are eligible to contribute toward the Energy Access Plan target include energy bill assistance programs such as the Low-Income Home Energy Assistance Program, Arizona Public Services (APS) Crisis Bill Assistance, and Salt River Project (SRP) Economy Price Plan as well as energy efficiency programs such as the Weatherization Assistance Program, Home Electrification and Appliance Rebates Program, and Home Efficiency Rebates Program. In 2024, the estimated number of households participating in low-income energy programs was 72,074. This baseline will be used to measure progress towards the 25 percent increase in participation by 2030.
2025 Energy Access Plan Actions
The actions outlined in the 2025 Energy Access Plan (Attachment B) are informed by community feedback from workshops, events, and an online survey. Actions were evaluated interdepartmentally for feasibility based on time restraints, organizational and program capacities, scope of influence, funding, and alignment with the target. Actions to increase household participation in low-income energy programs and decrease energy poverty include:
- Expand the City of Phoenix Weatherization Assistance Program: Increase the capacity of the Weatherization Assistance Program to support energy efficiency in low-income communities.
- Strengthen Community-Driven Planning and Programs: Adopt a cross-sector strategy to address energy affordability that centers community voices in program design and decision-making.
- Expand Multilingual and Community-Based Energy Education: Collaborate with stakeholders and community partners to improve energy education.
- Improve Solar Access and Consumer Protection: Seek solar opportunities for low-income households while improving education and strengthen partnerships that support solar consumer protections.
- Scale Up Workforce Development: Expand pathways to employment in energy efficiency and clean energy careers.
- Support Sustainability Advocacy Structures: Strengthen Citywide and interorganizational coordination structures that support energy affordability.
Concurrence/Previous Council Action
- On October 12, 2021, City Council approved the Phoenix Climate Action Plan.
- On January 15, 2025, City Council adopted the Energy Access Target.
Department
Responsible Department
This item is submitted by Assistant City Manager Ginger Spencer, Deputy City Manager Alan Stephenson, the Office of Sustainability and the Office of Environmental Programs.