Senate Engrossed House Bill

commerce authority; gas; prices; prioritization

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2696

AN ACT

providing for the Arizona commerce authority to reduce fuel and gas prices.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Arizona commerce authority; fuel and gas resilience; delayed repeal

A. Notwithstanding any other law, the Arizona commerce authority may use available resources to improve motor fuel and gasoline resilience in this state. The Arizona commerce authority shall consider the improvement of motor fuel and gasoline resilience in this state as one of its objectives and may use any existing program or incentive to advance the objective.

B. This section is repealed from and after December 31, 2030.

Sec. 2. Arizona commerce authority; study; report

A. The Arizona commerce authority shall collaborate with members of the fuel resiliency task force to study and develop recommendations on all of the following:

1. The process for revising the state implementation plan for the 2015 national ambient air quality standards for the Phoenix-Mesa nonattainment area cleaner burning gasoline blend program and the potential impact on gas prices, motor fuel supplies and air quality in this state by revising the state implementation plan.

2. The construction of additional refined products pipelines, refineries and storage capacities in this state to support the stability and resiliency of the fuel supply of this state.

3. The availability of potential alternative lower-production-cost fuel blends that could be sold in this state and the potential states or producers that could supply the alternative fuel.

B. The Arizona commerce authority shall meet at least three times between the effective date of this act and the date of the final report deadline in subsection C of this section with the chairpersons of the senate's natural resources committee and the house of representative's natural resources, energy and water committee, or their successor committees, to provide status updates on the price of fuel and gas in this state and the progress of the study and recommendations required by subsection A of this section.

C. On or before September 30, 2029, the Arizona commerce authority shall submit a report on findings related to the study prescribed in subsection A of this section and any recommendations to the governor, the president of the senate and the speaker of the house of representatives and shall provide a copy of this report to the secretary of state.  The report must contain at least all of the following:

1. The minutes of the fuel resiliency task force meetings.

2. The names, titles and employers of each federal official and member of the oil and gas industry that the task force consulted with in developing the recommendations and the nature and extent of the consultation.

3. Recommendations for action on each item listed in subsection A of this section, including recommendations for executive action, legislative action and private sector action.

4. A description of the areas of agreement or disagreement of the recommendations between individuals with whom the Arizona commerce authority consulted.

Sec. 3. Fuel resiliency task force; membership; duties; report; delayed repeal

A. The fuel resiliency task force is established in the Arizona commerce authority and consists of the following members:

1. The chief executive officer of the Arizona commerce authority or the chief executive officer's designee.  The chief executive officer of the Arizona commerce authority, or the chief executive officer's designee, shall serve as the chairperson of the task force.

2. The director of the division of emergency management within the department of emergency and military affairs or the director's designee.

3. The director of the Arizona department of agriculture or the director's designee.

4. The director of the department of environmental quality or the director's designee.

5. The executive director of the Maricopa association of governments or the executive director's designee.

6. The executive director of the governor's office of resiliency or the executive director's designee.

7. The chief executive officer of the western states petroleum association or the chief executive officer's designee.

8. The executive director of the Arizona petroleum marketers association or the executive director's designee.

9. The Kinder Morgan Phoenix terminal manager or the terminal manager's designee.

10. The aviation director for the city of Phoenix or the aviation director's designee.

B. The Arizona commerce authority shall do both of the following:

1. Provide meeting space and staff support as requested by the task force.

2. Keep minutes of each meeting of the task force.

C. The task force shall:

1. Meet at least quarterly.

2. Study and develop recommendations on the items prescribed in section 2, subsection A of this act.

3. Convene with federal officials, members of the oil and gas industry in the United States, subject matter experts as determined by the task force and all of the following on the items prescribed in section 2, subsection A of this act:

(a) Refinery operators.

(b) The state energy offices in other states within petroleum administrative defense districts three, four and five.

(c) The Texas oil and gas association.

(d) The New Mexico oil and gas association.

(e) The Utah petroleum association.

(f) The Colorado petroleum association.

(g) The Permian basin petroleum association.

(h) The American fuel and petrochemical manufacturers.

(i) The Navajo nation oil and gas company.

(j) The national tribal energy association.

4. On or before September 30, 2029, collaborate with the Arizona commerce authority to submit a report of the task force's findings and recommendations as provided in section 2 of this act.

D. This section is repealed from and after December 31, 2030.