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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
gasoline formulations; air quality
Purpose
Conditional on the U.S. Environmental Protection Agency's (EPA's) approval of the proposed modifications to the gasoline fuel blend requirements for Area A and Area C as part of the state implementation plan for air quality by July 1, 2030, removes the statutorily prescribed fuel reformulation requirements for outlined areas and requires all gasoline sold or offered for sale for use in motor vehicles in outlined areas, from April 1 through October 31 of each year, to comply with standards for ASTM D4814.
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. §§ 3-3401; 3-3433; and 3-3493).
Any registered supplier or oxygenate blender may petition the Associate Director of the Division (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
Area A
1. Removes the requirement that all gasoline produced and shipped to or within Arizona and sold or offered for sale for use in motor vehicles in a county with 1,200,000 persons and any portion of a county contained in Area A, subject to an outlined waiver, comply with:
a) a gasoline that meets the statutorily prescribed standards for federal Phase II reformulated gasoline; and
b) a gasoline that meets the statutorily prescribed standards for California Phase II reformulated gasoline, including alternative formulations allowed by the predictive model, as adopted by the California Air Resources Board.
2. Requires all gasoline produced and shipped to or within Arizona and sold or offered for sale for use in motor vehicles in a county with a population of 1,200,000 persons and any portion of a county contained in Area A, for the period beginning from April 1 through October 31 of each year and subject to an outlined waiver, to comply with standards for ASTM D4814 and meet statutorily prescribed vapor pressure requirements.
3. Allows any registered supplier or oxygenate blender to petition the Associate Director to request that all registered suppliers or oxygenate blenders be allowed to comply with standards other than the statutorily prescribed standards for fuel reformulation and oxygen content in a county with a population of 1,200,000 persons and any portion of a county contained in Area A, if the petitioner's ability to supply ethanol or gasoline meeting the prescribed specifications is in imminent danger and may result in shortages of ethanol and gasoline in Area A.
4. Requires the outlined petition, for gasoline shortages, to identify the formulation of gasoline that the petitioner will sell in lieu of gasoline meeting the prescribed standards for fuel reformulation and oxygen content in a county with a population of 1,200,000 persons and any portion of a county contained in Area A.
5. Requires the Associate Director, in consultation with the Director of the Arizona Department of Environmental Quality, to adopt by rule, statutorily prescribed requirements relating to the implementation of Area A fuel reformulation standards and record keeping, reporting and analytical methods for fuel providers.
Area C
6. Removes the requirements that, from April 1 through September 30 of each year, all gasoline produced and shipped to or within Arizona and sold or offered for sale for use in motor vehicles in Area C comply with the following fuel reformulation options:
a) a gasoline that meets the statutorily prescribed standards for federal Phase II reformulated gasoline; and
b) a gasoline that meets the statutorily prescribed standards for California Phase II reformulated gasoline, including alternative formulations allowed by the predictive model, as adopted by the California Air Resources Board.
7. Requires all gasoline produced and shipped to or within Arizona and sold or offered for sale for use in motor vehicles in Area C, for the period beginning from April 1 through October 31, of each year and subject to an outlined waiver, to comply with standards for ASTM D4814 and meet statutorily prescribed vapor pressure requirements.
8. Allows any registered supplier or oxygenate blender to petition the Associate Director to request that all registered suppliers or oxygenate blenders be allowed to supply gasoline in Area C that does not meet the outlined standards for fuel reformulation relating to ASTM D4814, if the petitioner demonstrates that the petitioner's ability to supply the outlined gasoline is in imminent danger and may result in supply shortages of gasoline in Area C.
Miscellaneous
9. Removes the requirement that the outlined fuel waiver petition identify specific supply conditions that will result in a shortage of ethanol.
10. Requires the outlined fuel waiver petition to specify a projected time period for compliance with the prescribed standards for fuel reformulation and oxygen content not to exceed 60 days.
11. Extends, from July 1, 2027, to July 1, 2030, the conditional enactment deadline for the U.S. EPA to approve the proposed modifications to the gasoline fuel formulation requirements relating to Area A as part of the Arizona state implementation plan for air quality.
12. 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 and Area C as part of the state implementation plan for air quality by July 1, 2030.
13. Becomes effective on the general effective date or later, subject to the provisions of the conditional enactment.
House Action
NREW 2/3/26 DP 6-4-0-0
3rd Read 2/26/26 31-22-7
Prepared by Senate Research
March 23, 2026
SB/ci