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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
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. Establishes the Fuel Resiliency Task Force (Task Force) in the ACA.
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 one of its primary objectives.
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. Establishes the Task Force in the ACA that consists of:
a) the Chief Executive Officer of the ACA or the Chief Executive Officer's designee;
b) the Director of the Division of Emergency Management within the Department of Emergency and Military Affairs or the Director's designee;
c) the Associate Director of the Weights and Measures Services Division of the Arizona Department of Agriculture or the Associate Director's designee;
d) the Director of the Department of Environmental Quality or the Director's designee;
e) the Director of Arizona Environmental Planning for the Maricopa Association of Governments or the Director's designee;
f) the Program Administrator of the Oil and Gas Conservation Commission or the Program Administrator's designee;
g) the head of the Pipeline Safety Division of the Arizona Corporation Commission or the head's designee;
h) the Director of the Arizona Department of Transportation or the Director's designee;
i) the Arizona State Land Commissioner or the Commissioner's designee;
j) the Governor or the Governor's designee;
k) the Speaker of the House of Representatives or the Speaker's designee;
l) the President of the Senate or the President's designee;
m) the Minority Leader of the House of Representatives or the Minority Leader's designee;
n) the Minority Leader of the Senate or the Minority Leader's designee;
o) the head of the Arizona Petroleum Marketers Association or the head's designee;
p) the President of the Arizona Trucking Association or the President's designee;
q) the Executive Director of the Arizona Rock Products Association or the Executive Director's designee;
r) the President of the Arizona chapter of the Associated General Contractors of America or the President's designee;
s) the President of the Arizona Chamber of Commerce or the President's designee;
t) the head of the Western States Petroleum Association or the head's designee;
u) the President of the Permian Basin Petroleum Association or the President's designee;
v) the President of the New Mexico Oil and Gas Association or the President's designee;
w) the President of the Texas Oil and Gas Association or the President's designee;
x) the President of the Four Corners Chapter of the American Petroleum Institute or the President's designee;
y) the President of the Permian Basin Chapter of the American Petroleum Institute or the President's designee;
z) the head of the American Fuel and Petrochemical Manufacturers or the head's designee.
aa) the President of the Utah Petroleum Association or the President's designee;
bb) the President of the Colorado Petroleum Association or the President's designee; and
cc) the President of the Navajo Nation Oil and Gas Company or the President's designee.
9. Requires the ACA to provide meeting space and staff support as requested by the Task Force.
10. Requires the Task Force to:
a) meet at least quarterly;
b) engage with interested stakeholders, including state, regional and federal stakeholders;
c) identify options to expand infrastructure and partnership opportunities that support the stability of the fuel supply of Arizona;
d) evaluate the expected impact on Arizona of:
i. the use of alternative lower-cost fuel blends in Arizona;
ii. the construction of additional refined products pipelines in Arizona;
iii. the construction of one or more refineries in Arizona;
iv. the establishment of a strategic oil and gas reserve in Arizona;
e) keep minutes of each meeting of the task force; and
f) by September 30, 2028, submit a report of the task force's findings and recommendations to the Governor, the President of the Senate and the Speaker of the House of Representatives and provide a copy of this report to the Secretary of State.
11. Requires the report to contain:
a) the minutes of the Task Force, including the stated positions of each member, and the attendance records of each meeting;
b) recommendations for executive action;
c) recommendations for legislative action;
d) recommendations for private sector action; and
e) areas of agreements and disagreements in the recommendations.
12. Repeals the Fuel Resiliency Task Force on January 1, 2029.
13. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Requires the ACA to consider the reduction of fuel and gas prices to be one of the ACA's primary objectives, rather than its only primary objective.
2. Establishes the Task Force, as prescribed.
3. Requires the Task Force to:
a) meet at least quarterly;
b) engage with interested state, regional and federal stakeholders;
c) identify options to expand infrastructure and partnership opportunities that support the stability of Arizona's fuel supply;
d) evaluate, the use of alternative lower-cost fuel blends, the construction of additional refined products pipelines, the construction of refineries, the establishment of a strategic oil and gas reserve; and
e) comply with outlined reporting requirements.
4. Repeals the Task Force on January 1, 2029.
House Action Senate Action
NREW 2/3/26 DPA 6-4-0-0 NR 3/24/26 DPA 5-3-0
3rd Read 2/25/26 31-23-6
Prepared by Senate Research
March 30, 2026
SB/NRG/hk