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HB2145 • 2026

petition; waiver; fuel formulations

HB2145 - petition; waiver; fuel formulations

Agriculture
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Gail Griffin
Last action
2026-03-04
Official status
Senate second read
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details on how the U.S. EPA's approval will be obtained or what modifications are required.

Petition and Waiver for Fuel Formulations

HB2145 allows registered fuel suppliers or oxygenate blenders to request a waiver from certain fuel standards if they face ethanol shortages, provided the U.S. EPA approves related modifications by July 1, 2027.

What This Bill Does

  • Allows any registered supplier or oxygenate blender to petition both the President of the Senate and Speaker of the House for a waiver from specific fuel reformulation requirements if they face ethanol shortages.
  • Requires the President of the Senate and Speaker of the House to either grant or deny such petitions in writing within seven days.
  • Ensures that any granted waiver applies equally to all suppliers, not just the petitioner.
  • Allows reauthorization of a granted petition if conditions continue, but limits it to 30 days.

Who It Names or Affects

  • Registered suppliers and oxygenate blenders in Arizona who face ethanol supply shortages.
  • The President of the Senate and Speaker of the House of Representatives.

Terms To Know

Ethanol
A type of alcohol used as a fuel additive to improve air quality.
Oxygenate blender
Someone who mixes ethanol or other oxygenates into gasoline.

Limits and Unknowns

  • The bill's effectiveness depends on U.S. EPA approval by July 1, 2027.
  • It does not specify the exact conditions under which a waiver will be granted beyond imminent shortages of ethanol.

Bill History

  1. 2026-03-04 Senate

    Senate second read

  2. 2026-03-03 Senate

    Senate Rules: None

  3. 2026-03-03 Senate

    Senate Natural Resources: FAILED

  4. 2026-03-03 Senate

    Senate first read

  5. 2026-02-26 Senate

    Transmitted to Senate

  6. 2026-02-25 House

    House third read passed

  7. 2026-02-24 House

    House committee of the whole

  8. 2026-02-10 House

    House minority caucus

  9. 2026-02-10 House

    House majority caucus

  10. 2026-02-09 House

    House consent calendar

  11. 2026-01-13 House

    House second read

  12. 2026-01-12 House

    House Rules: C&P

  13. 2026-01-12 House

    House Natural Resources, Energy & Water: DP

  14. 2026-01-12 House

    House first read

Official Summary Text

HB2145 - 572R - Senate Fact Sheet

Assigned to
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COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
H.B. 2145

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

1.

Allows any registered supplier or oxygenate blender to petition both the
President of the Senate and Speaker of the House to request a waiver for all
registered suppliers or oxygenate blenders from compliance with
:

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

3
rd
Read��������� 2/25/26
���������������� 31-22-7

Prepared by
Senate Research

March 20, 2026

SB/hk

Current Bill Text

Read the full stored bill text
HB2145 - 572R - H Ver

House Engrossed

petition; waiver;
fuel formulations

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2145

AN
ACT

amending Section 3-3493, Arizona Revised Statutes,
as amended by Laws 2016, chapter 232, section 27; amending Section 3-3493,
Arizona Revised Statutes, as amended by Laws 2017, chapter 295, section 2;
amending section 3-3494, Arizona Revised Statutes; relating to motor fuel.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1. Section 3-3493, Arizona Revised
Statutes, as amended by Laws 2016, chapter 232, section 27, is amended to read:

START_STATUTE
3-3493.

Area A; fuel reformulation; rules

A. All gasoline produced and shipped to or within
this state and sold or offered for sale for use in motor vehicles in a county
with a population of one million two hundred thousand or more persons and any
portion of a county contained in area A, subject to an appropriate waiver
granted by the administrator of the United States environmental protection
agency pursuant to section 211(c)(4) of the clean air act as defined in section
49-401.01, shall comply with either of the following fuel reformulation
options:

1. A gasoline that meets standards for federal phase
II reformulated gasoline, as provided in 40 Code of Federal Regulations section
80.41, paragraphs (e) through (h), in effect on January 1, 1999, except that
the minimum oxygen content standard does not apply.� The gasoline shall also
meet the maximum vapor pressure requirements in section 3-3433,
subsections D and F.

2. California phase 2 reformulated gasoline,
including alternative formulations allowed by the predictive model, as adopted
by the California air resources board pursuant to California Code of
Regulations title 13, sections 2261 through 2262.7 and 2265, in effect on
January 1, 1997, except that the minimum oxygen content standard does not
apply.� The gasoline shall also meet the maximum vapor pressure requirements in
section 3-3433, subsections D and F.

B. For the period beginning November 1 through March
31 of each year, all gasoline produced and shipped to or within this state and
sold or offered for sale for use in motor vehicles in a county with a
population of one million two hundred thousand or more persons and any portion
of a county contained in area A, subject to an appropriate waiver granted by
the administrator of the United States environmental protection agency pursuant
to section 211(c)(4) of the clean air act as defined in section 49-401.01,
shall comply with standards for California phase 2 reformulated gasoline,
including alternative formulations allowed by the predictive model, as adopted
by the California air resources board pursuant to California Code of
Regulations title 13, sections 2261 through 2262.7 and 2265, in effect on
January 1, 1997 and shall meet the maximum vapor pressure requirements in
section 3-3433, subsections D and F. The fuel described in
this subsection shall meet the requirements of section 3-3492, subsection
A, paragraph 1.

C. Any registered supplier or oxygenate blender, as
defined in division rules, may petition the associate director
or
both the president of the senate and the speaker of the house of
representatives
to request that all registered suppliers or oxygenate
blenders be allowed to comply with standards other than the standards
prescribed by section 3-3492, subsection A if the petitioner can
demonstrate that ethanol supply shortages are imminent.

D. The petition shall:

1. Identify specific supply conditions that will
result in a 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 ten percent
by volume of ethanol.

4. Specify a time period for compliance with any
provision of section 3-3492, subsection A, not to exceed sixty days.

E. The associate director
or both the
president of the senate and the speaker of the house of representatives

shall either grant or deny the petition in writing within seven days of its
receipt.� Any decision by the associate director
or both the
president of the senate and the speaker of the house of representatives

to grant the petition shall be equally applicable to all registered suppliers
or oxygenate blenders and shall not be selectively applied to any single
registered supplier or oxygenate blender.� The petition may be granted only if
the associate director
or both the president of the senate and
the speaker of the house of representatives
verifies that the basis for
requesting the petition is factual.

F. The associate director
or both the
president of the senate and the speaker of the house of representatives

may reauthorize a petition if the petitioner can demonstrate that the
conditions have continued. The reauthorization of a petition shall
not exceed thirty days.

G. The associate director of the division shall
consult with the director of the department of environmental quality before
granting, reauthorizing or denying any such petition.

H. The director of environmental quality in
consultation with the associate director of the division shall adopt by rule:

1. Requirements to implement subsections A, B, C and
D of this section.

2. Requirements for recordkeeping, reporting and
analytical methods for fuel providers to demonstrate compliance with
subsections A, B, C and D of this section.

I. This section does not apply to fuel sold for use
at a motor vehicle manufacturer proving ground or at a motor vehicle racing
event.
END_STATUTE

Sec. 2. Section 3-3493, Arizona Revised Statutes, as amended by Laws 2017, chapter 295, section
2, is amended to read:

START_STATUTE
3-3493.

Area A; fuel reformulation; rules

A. All gasoline
produced and shipped to or within this state and sold or offered for sale for
use in motor vehicles in a county with a population of one million two hundred
thousand or more persons and any portion of a county contained in area A,
subject to an appropriate waiver granted by the administrator of the United
States environmental protection agency pursuant to section 211(c)(4) of the
clean air act as defined in section 49-401.01, shall comply with either
of the following fuel reformulation options:

1. A gasoline that meets standards for federal phase
II reformulated gasoline, as provided in 40 Code of Federal Regulations section
80.41, paragraphs (e) through (h), in effect on January 1, 1999, except that
the minimum oxygen content standard does not apply. The gasoline
shall also meet the maximum vapor pressure requirements in section 3-3433,
subsections D and F.

2. California phase 2 reformulated gasoline,
including alternative formulations allowed by the predictive model, as adopted
by the California air resources board pursuant to California Code of
Regulations title 13, sections 2261 through 2262.7 and 2265, in effect on
January 1, 1997, except that the minimum oxygen content standard does not
apply. The gasoline shall also meet the maximum vapor pressure
requirements in section 3-3433, subsections D and F.

B. For the period beginning November 1 through March
31 of each year, all gasoline produced and shipped to or within this state and
sold or offered for sale for use in motor vehicles in a county with a
population of one million two hundred thousand or more persons and any portion
of a county contained in area A, subject to an appropriate waiver granted by
the administrator of the United States environmental protection agency pursuant
to section 211(c)(4) of the clean air act as defined in section 49-401.01,
shall comply with standards for California phase 2 reformulated gasoline,
including alternative formulations allowed by the predictive model, as adopted
by the California air resources board pursuant to California Code of
Regulations title 13, sections 2261 through 2262.7 and 2265, in effect on
January 1, 1997 and shall meet the maximum vapor pressure requirements in
section 3-3433, subsections D and F. The fuel described in
this subsection shall meet the requirements of section 3-3492, subsection
A, paragraph 1 or 2.

C. Any registered supplier or oxygenate blender, as
defined in division rules, may petition the associate director
or
both the president of the senate and the speaker of the house of
representatives
to request that all registered suppliers or oxygenate
blenders be allowed to comply with standards other than the standards
prescribed by section 3-3492, subsection A if the petitioner can
demonstrate that ethanol supply shortages are imminent.

D. The petition shall:

1. Identify specific supply conditions that will
result in a 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 ten percent
by volume of ethanol.

4. Specify a time period for compliance with any
provision of section 3-3492, subsection A, not to exceed sixty days.

E. The associate director
or both the
president of the senate and the speaker of the house of representatives

shall either grant or deny the petition in writing within seven days of its
receipt. Any decision by the associate director
or
both the president of the senate and the speaker of the house of
representatives
to grant the petition shall be equally applicable to all
registered suppliers or oxygenate blenders and shall not be selectively applied
to any single registered supplier or oxygenate blender.� The petition may be
granted only if the associate director
or both the president of
the senate and the speaker of the house of representatives
verifies that
the basis for requesting the petition is factual.

F. The associate director
or both the
president of the senate and the speaker of the house of representatives

may reauthorize a petition if the petitioner can demonstrate that the
conditions have continued. The reauthorization of a petition shall
not exceed thirty days.

G. The associate director of the division shall
consult with the director of the department of environmental quality before
granting, reauthorizing or denying any such petition.

H. The director of environmental quality in
consultation with the associate director of the division shall adopt by rule:

1. Requirements to implement subsections A, B, C and
D of this section.

2. Requirements for recordkeeping, reporting and
analytical methods for fuel providers to demonstrate compliance with
subsections A, B, C and D of this section.

I. This section does not apply to fuel sold for use
at a motor vehicle manufacturer proving ground or at a motor vehicle racing
event.
END_STATUTE

Sec. 3. Section 3-3494, Arizona Revised Statutes, is amended to read:

START_STATUTE
3-3494.

Area C; fuel reformulation; rules

A. From and after May
31 through September 30 of each year, all gasoline produced and shipped to or
within this state and sold or offered for sale for use in motor vehicles in
area C shall comply with either of the following fuel reformulation options:

1. A gasoline that meets standards for federal phase
II reformulated gasoline, as provided in 40 Code of Federal Regulations section
80.41, paragraphs (e) through (h), in effect on January 1, 1999, except that
the minimum oxygen content standard does not apply.� The gasoline shall also
meet the maximum vapor pressure requirements in section 3-3434,
subsection D.

2. California phase 2 reformulated gasoline,
including alternative formulations allowed by the predictive model, as adopted
by the California air resources board pursuant to California Code of
Regulations title 13, sections 2261 through 2262.7 and 2265, in effect on
January 1, 1997, except that the minimum oxygen content standard does not
apply.� The gasoline shall also meet the maximum vapor pressure requirements in
section 3-3434, subsection D.

B. Any registered supplier or oxygenate blender, as
defined in division rules, may petition the associate director
or
both the president of the senate and the speaker of the house of
representatives
to request that all registered suppliers or oxygenate
blenders be allowed to supply gasoline in area C that does not meet the
standards in subsection A of this section if the petitioner demonstrates that a
shortage in the supply of gasoline meeting the standards in subsection A of
this section is imminent.

C. A petition under subsection B of this section
shall:

1. Identify specific supply conditions that will
result in a shortage of gasoline meeting the standards in subsection A of this
section.

2. Identify the formulation of gasoline that will be
sold in area C in lieu of gasoline meeting the standards in subsection A of
this section.

3. Specify a time period for compliance with the
standards of subsection A of this section not to exceed sixty days.

D. The associate director
or both the
president of the senate and the speaker of the house of representatives

shall either grant or deny a petition under subsection B of this section in
writing within seven days of its receipt.� Any decision by the associate
director
or both the president of the senate and the speaker of
the house of representatives
to grant the petition shall be equally
applicable to all registered suppliers or oxygenate blenders and shall not be
selectively applied to any single registered supplier or oxygenate blender. The
petition may be granted only if the associate director
or both
the president of the senate and the speaker of the house of representatives

verifies that the basis for requesting the petition is factual.

E. The associate director
or both the
president of the senate and the speaker of the house of representatives

may reauthorize a petition granted under subsection B of this section if the
petitioner demonstrates that the conditions identified in the petition have
continued.� The reauthorization of a petition shall not exceed thirty days.

F. The associate director of the division shall
consult with the director of the department of environmental quality before
granting, reauthorizing or denying any petition under subsection B of this
section.

G. The associate director, in consultation with the
director of the department of environmental quality, shall adopt by rule:

1. Requirements to implement subsections A, B and C
of this section.

2. Requirements for recordkeeping, reporting and
analytical methods for fuel providers to demonstrate compliance with subsection
A of this section.

H. This section does not apply to fuel sold for use
at a motor vehicle manufacturer proving ground or at a motor vehicle racing
event.
END_STATUTE

Sec. 4.
Conditional
enactment

Section 3-3493, Arizona Revised
Statutes, as amended by Laws 2017, chapter 295, section 2 and this act, does
not become effective unless the condition prescribed by Laws 2017, chapter 295,
section 3, as amended by Laws 2022, chapter 177, section 12 and Laws 2024, chapter
70, section 1, is met.