ARIZONA STATE SENATE

RESEARCH STAFF

SAWYER BESSLER

LEGISLATIVE RESEARCH ANALYST

NATURAL RESOURCES COMMITTEE

Telephone: (602) 926-3171

TO:                  MEMBERS OF THE SENATE

APPROPRIATIONS, TRANSPORTATION & TECHNOLOGY COMMITTEE

DATE:            March 27, 2026

SUBJECT:      Strike everything amendment to H.B. 2955, relating to fuel formula

Purpose

Requires the Director of the Arizona Department of Environmental Quality (ADEQ) and the Associate Director of the Weights and Measures Services Division of the Arizona Department of Agriculture (Associate Director), notwithstanding the state implementation plan and if the U.S. Energy Information Administration's short-term energy outlook identifies supply issues for gasoline or crude oil, to collaborate to submit an emergency fuel formulation waiver to the U.S. Environmental Protection Agency (EPA) for the period between March 1 and October 31 of each year. Outlines requirements for the emergency fuel waiver request.

Background

Fuel sold in Arizona must meet minimum standards prescribed by statute and by Arizona Department of Agriculture Weights and Measures 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. §§ 3-3401; 3-3433; and 3-3493).

Any registered supplier or oxygenate blender may petition the Associate Director for a waiver for all registered suppliers or oxygenate blenders from compliance with statutorily prescribed standards for the sale of gasoline 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 April 1 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 (A.R.S. §§ 3-3493 and 3-3494).

The reformulated gasoline program was mandated by the U.S. Congress in the 1990 Clean Air Act Amendments. The federal 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).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Requires the Director of ADEQ and the Associate Director, notwithstanding the state implementation plan and if the U.S. Energy Information Administration's short-term energy outlook identifies supply issues for gasoline or crude oil, to collaborate to submit an emergency fuel formulation waiver to the EPA for the period between March 1 and October 31 of each year.

2. Requires the outlined emergency fuel formulation waiver request to:

a) be equally applicable to all registered suppliers or oxygenate blenders;

b) not selectively apply to any specific registered supplier or oxygenate blender;

c) apply to all areas of Arizona; and

d) be resubmitted at the end of each waiver period if the conditions meriting the emergency fuel formulation waiver continue.

3. Contains a statement of legislative findings.

4. Becomes effective on the general effective date.