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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
commerce authority; gas; prices; prioritization
Purpose
Requires the Arizona Commerce Authority (ACA) to use all available resources to reduce fuel and gas prices in Arizona, study the outlined oil and gas topics and submit a report of the study to Legislative Leadership and the Governor, as outlined.
Background
In 2011, the Legislature established the ACA to provide private sector leadership in growing and diversifying the economy of Arizona, creating high quality employment in Arizona through expansion, attraction and retention of businesses and marketing Arizona for the purpose of expansion, attraction and retention of businesses (Laws 2011, Ch. 1).
The ACA is
governed by the ACA Board which consists of 19 voting members, including the
Governor, serving as Chairperson, the Chief Executive Officer (CEO) of the ACA
and 17 private sector business leaders who are CEOs of private, for-profit
enterprises. Of the 17 private sector voting members, 9 are appointed by the
Governor, 4 are appointed by the Senate President and 4 are appointed by the Speaker
of the House of Representatives (House). The ACA Board also includes 10
ex-officio members without the power to vote, including: 1) the Senate
President;
2) the House Speaker; 3) the President of Arizona Board of Regents; 4) the
president of each state university; 5) one president of a community college; 6)
the Chairperson of the Governor's Council on Small Business; 7) the Chairperson
of the Workforce Arizona Council; 8) one member of the Rural Business
Development Advisory Council; 9) the president of a statewide organization of
incorporated cities and towns; and 10) the president of a statewide
organization of county boards of supervisors (A.R.S.
§ 41-1502).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the ACA to use all available resources to reduce fuel and gas prices in Arizona.
2. Requires the ACA to consider the reduction of fuel and gas prices in Arizona as its primary objective.
3. Requires the ACA to prioritize the use of any existing program or incentive to advance the objective and reduce fuel and gas prices in Arizona.
4. Repeals the prescribed ACA fuel and gas price prioritization requirements from and after January 1, 2030.
5. Requires the ACA to collaborate with members of the oil and gas industry to study:
a) the impact of and process for the repeal of Arizona's cleaner burning gasoline blend, including an evaluation of potential alternative lower cost blends for Arizona;
b) the construction of additional refined products pipelines in Arizona and establishment of a strategic oil and gas reserve in Arizona; and
c) the opportunity to construct one or more potential refineries in Arizona, including restarting and reevaluating, a proposed oil refinery in Yuma County.
6. Requires the ACA to meet at least three times between the general effective date and October 1, 2026, with the chairpersons of the Senate's Natural Resources Committee and the House's Natural Resources, Energy and Water Committee, or their successor committees, to provide status updates on the price of fuel and gas in Arizona and the progress of the prescribed study.
7. Requires the ACA, by October 1, 2026, to submit a report on findings related to the prescribed study and any legislative recommendations to the Governor, the Senate President, the House Speaker and provide a copy of the report to the Secretary of State.
8. Becomes effective on the general effective date.
House Action
NREW 2/3/26 DP 6-4-0-0
3rd Read 2/25/26 31-23-6
Prepared by Senate Research
March 20, 2026
SB/NRG/hk