ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

Senate: NREW DPA 4-1-2-0 | 3rd Read 17-11-2-0

SB 1064: gasoline formulations; air quality.

Sponsor: Senator Wadsack, LD 17

Committee on Natural Resources, Energy & Water

Overview

Adds various gasoline blends that may be approved for sale in specified counties.

History

The Weights and Services Division (Division) within the Arizona Department of Agriculture (ADA) is responsible for the inspecting, testing and licensing of commercial weighing, measuring and counting devices (A.R.S. § 3-102). Additionally, the Division's Associate Director, in consultation with the Arizona Department of Environmental Quality (ADEQ) Director, are required to adopt rules relating to fuel reformulations and standards in Arizona.

Area A encompasses the Phoenix metropolitan area and parts of Pinal and Yavapai Counties and Area C encompasses a portion of Pinal County (A.R.S. §§  3-3401, 49-541). Statute outlines the specific fuel reformulation options that can be produced and shipped to Arizona and sold for use in motor vehicles in Area A and Area C.

Provisions

Fuel Reformulations and Standards

1.   Adds the following fuel reformulation options for all gasoline sold for use in motor vehicles in Area A:

a)   a gasoline that meets standards for Federal Phase II reformulated gasoline, in effect on December 4, 2020, that meets maximum vapor pressure requirements and, for November 1 through March 31 annually, meets minimum oxygen content or percentage requirements; 

b)   a gasoline that meets standards for California Phase 3 reformulated gasoline, including alternative formulations allows by the predictive model, as adopted by the California Air Resources Board, in effect on February 16, 2014, and for November 1 through March 31 annually, meets Area A requirements; 

c) a gasoline that meets standards for Federal conventional gasoline and maximum vapor pressure requirements, and for November 1 through March 31 annually, meets the minimum oxygen content or percentage requirements; and

d)   a gasoline or gasoline blend that meets any of the outlined standards or is approved for use by the U.S. Environmental Protection Agency (EPA). (Sec. 2, 3,)

2.   Adds the following standards for all gasoline produced and shipped to or within Arizona and sold for use in motor vehicles in Area A for the period beginning November 1 through March 31 annually:

a)   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Notea gasoline that meets standards for California Phase 3 reformulated gasoline, including alternative fuel formulations allowed by the predictive model , in effect on February 16, 2014;

b)   a gasoline that meets standards for Federal Phase II reformulated gasoline, in effect on December 4, 2020;

c) a gasoline that meets standards for California Phase 3 reformulated gasoline, including alternative formulations allowed by the predictive model, in effect on February 16, 2014; and

d)   a gasoline or gasoline blend that meets any of the prescribed standards or is approved for use by the EPA. (Sec. 2, 3)

3.   Adds the following fuel reformulation options for all gasoline sold for use in motor vehicles in Area C for the period beginning May 31 through September 30:

a)   a gasoline that meets standards for California Phase 3 reformulated gasoline, including alternative fuel formulations allowed by the predictive model, in effect on February 16, 2014;

b)   a gasoline that meets standards for Federal Phase II reformulated gasoline, in effect on December 4, 2020;

c) a gasoline that meets standards for California Phase 2 reformulated gasoline, including alternative formulations allowed by the predictive model, in effect on January 1, 1997, and that meets maximum vapor pressure requirements;

d)   a gasoline that meets standards for federal conventional gasoline that meets maximum vapor pressure requirements and minimum oxygen content or percentage requirements; and

e)   a gasoline or gasoline blend that meets any of the prescribed standards or is approved for use by the EPA. (Sec. 4)

Petitions

4.   Allows the President of the Senate (President) and the Speaker of the House of Representatives (Speaker) to petition the Division's Associate Director to request that all registered suppliers or oxygenate blenders be allowed to comply with standards other than the ones prescribed if the petitioner can demonstrate that a registered supplier's or oxygenate blender's ability to supply ethanol or gasoline is in danger and may result in supply shortages in Area A. (Sec. 2)

5.   Allows the President and the Speaker to petition the Division's Associate Director to request that all retail sellers be allowed to sell or offer for sale gasoline for use in motor vehicles in Area A and Area C that does not meet prescribed standards if the petitioner can demonstrate their ability to supply ethanol or gasoline is in danger and may result in supply shortages in Area A and Area C. (Sec. 3, 4, 5)

6.   Requires a registered supplier or oxygenate blender that submits a petition to provide notice and a copy of the petition to the President and Speaker. (Sec. 2, 3, 4)

7.   Exempts a petition submitted by the President of the Senate or Speaker of the House of Representatives from public record. (Sec. 2, 3, 4, 5)

8.   Outlines what must be included in the petition. (Sec. 2, 3, 4)

 

 

Submission to EPA and Conditional Enactment

9.   Requires, within 120 days of the effective date of this legislation, the ADEQ Director to submit to the EPA the proposed modifications to the gasoline fuel reformulations as part of the State Implementation Plan for Air Quality (SIP). (Sec. 6)

10.  Specifies that if the EPA rejects a portion of the fuel reformulations, the ADEQ Director must resubmit the proposed modifications to the EPA before notifying the Director of the Arizona Legislative Council that the condition has not been met. (Sec. 6)

11.  States that initial rejection of the gasoline formulations does not constitute the conditional enactment not being met or prohibit ADEQ from resubmitting the gasoline formulations. (Sec. 6)

12.  Requires the Division and the Division's Associate Director to maintain a list of all approved gasoline formulations by area on the ADA website. (Sec. 6)

13.  Requires the Division's Associate Director to:

a)   update the list as the EPA approves or denies new gasoline reformulations; and

b)   post on the ADA website a map that includes all currently approved gasoline formulations by area and a map of Area A, B and C. (Sec. 6)

14.  Conditions the enactment of this legislation on:

a)   the EPA approving the proposed modifications to the gasoline fuel formulation requirements as part of the SIP by July 1, 2025; or

b)   the proposed allowance of iso-butanol as a gasoline ingredient in Arizona being approved by the EPA and added as an additional proposed modification to the Gasoline Fuel Formulation Requirements as part of the SIP. (Sec. 7)

15.  Requires the ADEQ Director to notify the Arizona Legislative Council Director in writing by October 1, 2025, either:

a)   of the date on which the conditions were met; or

b)   that neither condition was met. (Sec. 7)

Miscellaneous

16.  Makes technical and conforming changes. (Sec. 1, 2, 3, 4)

17.   

18.   

19.  ---------- DOCUMENT FOOTER ---------

20.                    SB 1064

21.  Initials EB           Page 0 Natural Resources, Energy & Water

22.   

23.  ---------- DOCUMENT FOOTER ---------