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House Engrossed
petition; waiver; fuel formulations |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HOUSE BILL 2145 |
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AN ACT
amending Section 3-3493, Arizona Revised Statutes, as amended by Laws 2016, chapter 232, section 27; amending Section 3-3493, Arizona Revised Statutes, as amended by Laws 2017, chapter 295, section 2; amending section 3-3494, Arizona Revised Statutes; relating to motor fuel.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 3-3493, Arizona Revised Statutes, as amended by Laws 2016, chapter 232, section 27, is amended to read:
3-3493. Area A; fuel reformulation; rules
A. All gasoline produced and shipped to or within this state and sold or offered for sale for use in motor vehicles in a county with a population of one million two hundred thousand or more persons and any portion of a county contained in area A, subject to an appropriate waiver granted by the administrator of the United States environmental protection agency pursuant to section 211(c)(4) of the clean air act as defined in section 49-401.01, shall comply with either of the following fuel reformulation options:
1. A gasoline that meets standards for federal phase II reformulated gasoline, as provided in 40 Code of Federal Regulations section 80.41, paragraphs (e) through (h), in effect on January 1, 1999, except that the minimum oxygen content standard does not apply. The gasoline shall also meet the maximum vapor pressure requirements in section 3-3433, subsections D and F.
2. California phase 2 reformulated gasoline, including alternative formulations allowed by the predictive model, as adopted by the California air resources board pursuant to California Code of Regulations title 13, sections 2261 through 2262.7 and 2265, in effect on January 1, 1997, except that the minimum oxygen content standard does not apply. The gasoline shall also meet the maximum vapor pressure requirements in section 3-3433, subsections D and F.
B. For the period beginning November 1 through March 31 of each year, all gasoline produced and shipped to or within this state and sold or offered for sale for use in motor vehicles in a county with a population of one million two hundred thousand or more persons and any portion of a county contained in area A, subject to an appropriate waiver granted by the administrator of the United States environmental protection agency pursuant to section 211(c)(4) of the clean air act as defined in section 49-401.01, shall comply with standards for California phase 2 reformulated gasoline, including alternative formulations allowed by the predictive model, as adopted by the California air resources board pursuant to California Code of Regulations title 13, sections 2261 through 2262.7 and 2265, in effect on January 1, 1997 and shall meet the maximum vapor pressure requirements in section 3-3433, subsections D and F. The fuel described in this subsection shall meet the requirements of section 3-3492, subsection A, paragraph 1.
C. Any registered supplier or oxygenate blender, as defined in division rules, may petition the associate director or both the president of the senate and the speaker of the house of representatives to request that all registered suppliers or oxygenate blenders be allowed to comply with standards other than the standards prescribed by section 3-3492, subsection A if the petitioner can demonstrate that ethanol supply shortages are imminent.
D. The petition shall:
1. Identify specific supply conditions that will result in a shortage of ethanol.
2. Identify which oxygenate or oxygenates and the concentration that will be blended into gasoline for sale or use in area A.
3. Demonstrate that the alternative oxygenate blend comes closest to meeting a three and one-half percent by weight oxygen content at reasonable cost, unless the registered supplier or oxygenate blender is petitioning to use a gasoline-ethanol blend containing less than ten percent by volume of ethanol.
4. Specify a time period for compliance with any provision of section 3-3492, subsection A, not to exceed sixty days.
E. The associate director or both the president of the senate and the speaker of the house of representatives shall either grant or deny the petition in writing within seven days of its receipt. Any decision by the associate director or both the president of the senate and the speaker of the house of representatives to grant the petition shall be equally applicable to all registered suppliers or oxygenate blenders and shall not be selectively applied to any single registered supplier or oxygenate blender. The petition may be granted only if the associate director or both the president of the senate and the speaker of the house of representatives verifies that the basis for requesting the petition is factual.
F. The associate director or both the president of the senate and the speaker of the house of representatives may reauthorize a petition if the petitioner can demonstrate that the conditions have continued. The reauthorization of a petition shall not exceed thirty days.
G. The associate director of the division shall consult with the director of the department of environmental quality before granting, reauthorizing or denying any such petition.
H. The director of environmental quality in consultation with the associate director of the division shall adopt by rule:
1. Requirements to implement subsections A, B, C and D of this section.
2. Requirements for recordkeeping, reporting and analytical methods for fuel providers to demonstrate compliance with subsections A, B, C and D of this section.
I. This section does not apply to fuel sold for use at a motor vehicle manufacturer proving ground or at a motor vehicle racing event.
Sec. 2. Section 3-3493, Arizona Revised Statutes, as amended by Laws 2017, chapter 295, section 2, is amended to read:
3-3493. Area A; fuel reformulation; rules
A. All gasoline produced and shipped to or within this state and sold or offered for sale for use in motor vehicles in a county with a population of one million two hundred thousand or more persons and any portion of a county contained in area A, subject to an appropriate waiver granted by the administrator of the United States environmental protection agency pursuant to section 211(c)(4) of the clean air act as defined in section 49-401.01, shall comply with either of the following fuel reformulation options:
1. A gasoline that meets standards for federal phase II reformulated gasoline, as provided in 40 Code of Federal Regulations section 80.41, paragraphs (e) through (h), in effect on January 1, 1999, except that the minimum oxygen content standard does not apply. The gasoline shall also meet the maximum vapor pressure requirements in section 3-3433, subsections D and F.
2. California phase 2 reformulated gasoline, including alternative formulations allowed by the predictive model, as adopted by the California air resources board pursuant to California Code of Regulations title 13, sections 2261 through 2262.7 and 2265, in effect on January 1, 1997, except that the minimum oxygen content standard does not apply. The gasoline shall also meet the maximum vapor pressure requirements in section 3-3433, subsections D and F.
B. For the period beginning November 1 through March 31 of each year, all gasoline produced and shipped to or within this state and sold or offered for sale for use in motor vehicles in a county with a population of one million two hundred thousand or more persons and any portion of a county contained in area A, subject to an appropriate waiver granted by the administrator of the United States environmental protection agency pursuant to section 211(c)(4) of the clean air act as defined in section 49-401.01, shall comply with standards for California phase 2 reformulated gasoline, including alternative formulations allowed by the predictive model, as adopted by the California air resources board pursuant to California Code of Regulations title 13, sections 2261 through 2262.7 and 2265, in effect on January 1, 1997 and shall meet the maximum vapor pressure requirements in section 3-3433, subsections D and F. The fuel described in this subsection shall meet the requirements of section 3-3492, subsection A, paragraph 1 or 2.
C. Any registered supplier or oxygenate blender, as defined in division rules, may petition the associate director or both the president of the senate and the speaker of the house of representatives to request that all registered suppliers or oxygenate blenders be allowed to comply with standards other than the standards prescribed by section 3-3492, subsection A if the petitioner can demonstrate that ethanol supply shortages are imminent.
D. The petition shall:
1. Identify specific supply conditions that will result in a shortage of ethanol.
2. Identify which oxygenate or oxygenates and the concentration that will be blended into gasoline for sale or use in area A.
3. Demonstrate that the alternative oxygenate blend comes closest to meeting a three and one-half percent by weight oxygen content at reasonable cost, unless the registered supplier or oxygenate blender is petitioning to use a gasoline-ethanol blend containing less than ten percent by volume of ethanol.
4. Specify a time period for compliance with any provision of section 3-3492, subsection A, not to exceed sixty days.
E. The associate director or both the president of the senate and the speaker of the house of representatives shall either grant or deny the petition in writing within seven days of its receipt. Any decision by the associate director or both the president of the senate and the speaker of the house of representatives to grant the petition shall be equally applicable to all registered suppliers or oxygenate blenders and shall not be selectively applied to any single registered supplier or oxygenate blender. The petition may be granted only if the associate director or both the president of the senate and the speaker of the house of representatives verifies that the basis for requesting the petition is factual.
F. The associate director or both the president of the senate and the speaker of the house of representatives may reauthorize a petition if the petitioner can demonstrate that the conditions have continued. The reauthorization of a petition shall not exceed thirty days.
G. The associate director of the division shall consult with the director of the department of environmental quality before granting, reauthorizing or denying any such petition.
H. The director of environmental quality in consultation with the associate director of the division shall adopt by rule:
1. Requirements to implement subsections A, B, C and D of this section.
2. Requirements for recordkeeping, reporting and analytical methods for fuel providers to demonstrate compliance with subsections A, B, C and D of this section.
I. This section does not apply to fuel sold for use at a motor vehicle manufacturer proving ground or at a motor vehicle racing event.
Sec. 3. Section 3-3494, Arizona Revised Statutes, is amended to read:
3-3494. Area C; fuel reformulation; rules
A. From and after May 31 through September 30 of each year, all gasoline produced and shipped to or within this state and sold or offered for sale for use in motor vehicles in area C shall comply with either of the following fuel reformulation options:
1. A gasoline that meets standards for federal phase II reformulated gasoline, as provided in 40 Code of Federal Regulations section 80.41, paragraphs (e) through (h), in effect on January 1, 1999, except that the minimum oxygen content standard does not apply. The gasoline shall also meet the maximum vapor pressure requirements in section 3-3434, subsection D.
2. California phase 2 reformulated gasoline, including alternative formulations allowed by the predictive model, as adopted by the California air resources board pursuant to California Code of Regulations title 13, sections 2261 through 2262.7 and 2265, in effect on January 1, 1997, except that the minimum oxygen content standard does not apply. The gasoline shall also meet the maximum vapor pressure requirements in section 3-3434, subsection D.
B. Any registered supplier or oxygenate blender, as defined in division rules, may petition the associate director or both the president of the senate and the speaker of the house of representatives to request that all registered suppliers or oxygenate blenders be allowed to supply gasoline in area C that does not meet the standards in subsection A of this section if the petitioner demonstrates that a shortage in the supply of gasoline meeting the standards in subsection A of this section is imminent.
C. A petition under subsection B of this section shall:
1. Identify specific supply conditions that will result in a shortage of gasoline meeting the standards in subsection A of this section.
2. Identify the formulation of gasoline that will be sold in area C in lieu of gasoline meeting the standards in subsection A of this section.
3. Specify a time period for compliance with the standards of subsection A of this section not to exceed sixty days.
D. The associate director or both the president of the senate and the speaker of the house of representatives shall either grant or deny a petition under subsection B of this section in writing within seven days of its receipt. Any decision by the associate director or both the president of the senate and the speaker of the house of representatives to grant the petition shall be equally applicable to all registered suppliers or oxygenate blenders and shall not be selectively applied to any single registered supplier or oxygenate blender. The petition may be granted only if the associate director or both the president of the senate and the speaker of the house of representatives verifies that the basis for requesting the petition is factual.
E. The associate director or both the president of the senate and the speaker of the house of representatives may reauthorize a petition granted under subsection B of this section if the petitioner demonstrates that the conditions identified in the petition have continued. The reauthorization of a petition shall not exceed thirty days.
F. The associate director of the division shall consult with the director of the department of environmental quality before granting, reauthorizing or denying any petition under subsection B of this section.
G. The associate director, in consultation with the director of the department of environmental quality, shall adopt by rule:
1. Requirements to implement subsections A, B and C of this section.
2. Requirements for recordkeeping, reporting and analytical methods for fuel providers to demonstrate compliance with subsection A of this section.
H. This section does not apply to fuel sold for use at a motor vehicle manufacturer proving ground or at a motor vehicle racing event.
Sec. 4. Conditional enactment
Section 3-3493, Arizona Revised Statutes, as amended by Laws 2017, chapter 295, section 2 and this act, does not become effective unless the condition prescribed by Laws 2017, chapter 295, section 3, as amended by Laws 2022, chapter 177, section 12 and Laws 2024, chapter 70, section 1, is met.