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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
petition; waiver; fuel formulations
Purpose
Conditional on the U.S. EPA's approval of the proposed modifications to the gasoline fuel blend requirements for Area A as part of the state implementation plan for air quality by July 1, 2027, allows any registered supplier or oxygenate blender to petition both the President of the Senate and Speaker of the House of Representatives (House) to request a waiver for all registered suppliers or oxygenate blenders from compliance with statutorily prescribed fuel reformulation requirements.
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 U.S. Environmental Protection Agency (U.S. 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. §§ 3-3401; 3-3433 and 3-3493).
Any registered supplier or oxygenate blender may petition the Associate Director of the Division for a waiver for all registered suppliers or oxygenate blenders from compliance with statutorily prescribed standards for the sale of gasoline during from November 1 through March 31 of each year in Area A if the petitioner can demonstrate that ethanol supply shortages are imminent or the statutorily prescribed standards for fuel reformulation in Area C from May 31 through September 30 of each year if the petitioner demonstrates that a shortage in the supply of gasoline meeting the prescribed standards for fuel reformulation in Area C is imminent.
The petition for Area A must: 1) identify specific supply conditions that will result in the 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 10 percent by volume of ethanol; and 4) specify a time period for compliance with the statutorily prescribed standards for the sale of gasoline not to exceed 60 days. The petition for Area C must: 1) identify specific supply conditions that will result in a shortage of gasoline meeting the statutorily prescribed fuel reformulation standards; 2) identify the formulation of gasoline that will be sold in Area C in lieu of gasoline meeting the statutorily prescribed fuel reformulation standards; and 3) specify a time period for compliance with the statutorily prescribed fuel reformulation standards not to exceed 60 days (A.R.S. §§ 3-3493 and 3-3494).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
a) the statutorily prescribed standards for the sale of gasoline from November 1 through March 31 of each year in Area A if the petitioner can demonstrate that ethanol supply shortages are imminent; or
b) the statutorily prescribed standards for fuel reformulation in Area C from May 31 through September 30 of each year if the petitioner demonstrates that a shortage in the supply of gasoline meeting the prescribed standards for fuel reformulation in Area C is imminent.
2. Allows both the President of the Senate and the Speaker of the House to either grant or deny the petition in writing within seven days of receipt.
3. Requires any decision by both the President of the Senate and the Speaker of the House to grant the petition to be equally applicable to all registered suppliers or oxygenate blenders and to not be selectively applied to any single registered supplier or oxygenate blender.
4. Allows the petition to be granted only if both the President of the Senate and Speaker of the House verify that the basis for requesting the petition is factual.
5. Allows both the President of the Senate and the Speaker of the House to reauthorize a granted petition if the petitioner can demonstrate that the conditions identified in the petition have continued.
6. Conditions the enactment of this legislation on the U.S. EPA's approval of the proposed modifications to the gasoline fuel blend requirements for Area A as part of the state implementation plan for air quality by July 1, 2027.
7. Becomes effective on the general effective date or later, subject to the provisions of the conditional enactment.
House Action
NREW 2/3/26 DP 5-4-0-1
3rd Read 2/25/26 31-22-7
Prepared by Senate Research
March 20, 2026
SB/hk