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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
fuel formulations; modeling; study; appropriation
Purpose
Requires the Director of the Department of Environmental Quality (ADEQ) to evaluate using the most recent air emissions modeling approved by the U.S. Environmental Protection Agency (EPA), outlined gasoline blends and appropriates $100,000 from the state General Fund (state GF) in FY 2027 to ADEQ for the evaluation. Requires the Associate Director of the Weights and Measures Services Division (Associate Director) of the Arizona Department of Agriculture (AZDA) to conduct the outlined fuel blend feasibility study and appropriates $100,000 from the state GF in FY 2027 to AZDA for the study.
Background
Fuel sold in Arizona must meet minimum standards prescribed by statute and by Arizona Department of Agriculture Weights and Measures Division (Division) rule. All gasoline produced and shipped to or within Arizona and all gasoline sold or offered for sale for use in motor vehicles in a county with a population of 1,200,000 or more persons and any portion of a county contained in Area A (Area A) or the portion of Pinal County that is west of range 11 east, excluding the portion within Area A (Area C), must comply with one of two outlined fuel reformulation options, subject to a waiver by the EPA to comply with the federal Clean Air Act. All gasoline in Area A or Area C must also meet the statutory maximum vapor pressure requirements, which vary based on the time of year (A.R.S. §§ 3-3433 and 3-3493).
The reformulated gasoline program was mandated by the U.S. Congress in the 1990 Clean Air Act Amendments. The Clean Air Act intended that reformulated gasoline would be blended to burn more cleanly than conventional gasoline and would reduce emissions of smog-forming and toxic pollutants. Reformulated Gasoline is required in cities with high smog levels and is optional elsewhere. Reformulated gasoline is currently used in 17 states and the District of Columbia. About 25 percent of gasoline sold in the United States is reformulated (EPA).
H.B. 2014 appropriates $100,000 from the state GF in FY 2027 to ADEQ and $100,000 from the state GF in FY 2027 to the AZDA.
Provisions
Air Emissions Modeling Report
1. Requires the Director of ADEQ, within 90 days of the general effective date and in consultation with the Associate Director, for each seasonal time period in area A and area C to evaluate using the most recent air emissions model approved by the EPA, each of the following gasoline blends for compliance:
a) federal phase II reformulated gasoline, in effect on January 1, 2021, as modified to meet the statutory requirements for the gasoline's maximum vapor pressure and the minimum oxygen content or percentage by volume of ethanol;
b) California phase 3 reformulated gasoline, in effect on February 16, 2014, as modified to meet the minimum oxygen content or the statutory requirements for the percentage by volume of ethanol;
c) federal conventional gasoline, as modified to meet the statutory requirements for the gasoline's maximum vapor pressure and the minimum oxygen content or percentage by volume of ethanol;
d) conventional gasoline or gasoline that otherwise meets the standards for ASTM D4814 and the statutory requirements for maximum vapor pressure; and
e) on the general effective date, all gasoline or gasoline blends that are approved for sale or use in petroleum administration of defense district five and that have not been approved for sale or use in area A and area C, during any seasonal period and that have not been evaluated by the Director of ADEQ using the most recent air emissions model approved by the EPA.
2. Requires the Director of ADEQ, within 90 days of the completion of the air emissions modeling, to prepare and publish on ADEQ's website a report containing the findings of the air emissions modeling and identifying each gasoline or gasoline blend that may be eligible for approval by the U.S. EPA to be sold or used in one or more regulated areas during one or more seasonal time periods.
3. Requires the Director of ADEQ to submit a copy of the report to the Associate Director, the Governor, the President of the Senate, the Speaker of the House of Representatives and provide a copy to the Secretary of State.
4. Appropriates $100,000 from the state GF in FY 2027 to ADEQ for the air emission modeling evaluation.
5. Repeals the air emissions modeling reporting requirements for ADEQ on October 1, 2027.
6. Requires the Associate Director, within 90 days of receipt of the outlined report and in consultation with registered suppliers and oxygenate blenders, to conduct a study to evaluate the feasibility of authorizing or obtaining for sale or use in Arizona each gasoline or gasoline blend identified in the report that meets the following criteria:
a) the gasoline or gasoline blend may be eligible for approval by the EPA to be sold or used in one or more regulated areas during one or more seasonal time periods; and
b) the gasoline or gasoline blend is not currently authorized for sale or use in area A and area C during any seasonal time period.
7. Requires the Associate Director, within 90 days after the feasibility study's completion, to prepare and publish on the Division's website a report containing the:
a) findings of the feasibility study;
b) impact of a potential gasoline's or gasoline blend's sale or authorization on Arizona's transportation fuel supply; and
c) availability of transportation or supply capacity to provide a potential gasoline or gasoline blend.
8. Requires the Associate Director to submit a copy of the report to the Governor, the President of the Senate, the Speaker of the House of Representatives and provide a copy the Secretary of State.
9. Requires the information that the Associate Director receives from a registered supplier or oxygenate blender to be treated as sensitive information and kept confidential.
10. Prohibits the Associate Director from naming, identifying or providing any identifiable information of a registered supplier or oxygenate blender in the prescribed report without the written consent of the registered supplier or oxygenate blender.
11. Repeals the fuel blend feasibility study requirements for the AZDA on October 1, 2027.
12. Appropriates $100,000 from the state GF in FY 2027 to the AZDA for fuel blend feasibility study.
Miscellaneous
13. Becomes effective on the general effective date.
House Action
NREW 2/3/26 DPA 10-0-0-0
APPROP 2/4/26 DPA 12-2-4-0
3rd Read 2/25/26 38-15-7
Prepared by Senate Research
March 13, 2026
SB/NRG/hk