Willoughby/Biasiucci Fuel Bills Delayed for Supermajority Miss

PHOENIX — The Arizona House passed three bills on February 24 aimed at reducing fuel costs in the Phoenix metropolitan area, but the centerpiece measure advanced to the Senate without the supermajority vote needed to take effect immediately — raising questions about whether the tax suspension will be in place before its intended May 1 start date.

House Bill HB2400, sponsored by Rep. Julie Willoughby (R-13) and co-sponsored by Rep. Leo Biasiucci (R-30), would suspend Arizona’s 18-cent-per-gallon motor vehicle fuel tax annually from May 1 through September 30 for fuel purchased, sold, or consumed in Area A and Area C — the air quality non-attainment zones covering Maricopa County and portions of Pinal County. The bill also mandates that ADOT allocate $72.6 million annually from the State Highway Fund to counties, cities, and towns, and to cities with populations over 300,000, to offset revenue lost during the suspension period. That distribution formula is fixed in statute under the engrossed version, providing local governments with a defined backfill rather than leaving the gap unaddressed.

A committee amendment adopted in the Natural Resources, Energy and Water committee added a provision that received limited attention during floor consideration: it prohibits ADOT and its internal departmental committee from recommending transportation construction project priorities based on how much motor vehicle fuel tax or use fuel tax a county contributes to the State Highway Fund. Its practical effect is to limit the leverage that high-revenue counties currently hold in ADOT’s five-year construction planning process. That restriction would persist regardless of whether the tax holiday ever takes effect.

The bill, which passed 32 to 24, fell short of the 40-vote supermajority needed for emergency clauses. As a result, HB2400 will not take effect upon enactment and will require the standard 90-day delay after the legislative session ends. The practical consequence is that the bill’s first summer window may not materialize regardless of what the Senate does. For the tax holiday to apply this year, the Senate would need either to attach its own emergency clause with the required votes or advance the bill quickly enough that the 90-day clock clears before May 1 — both unlikely given the session calendar.

A companion measure, House Bill HB2401, also sponsored by Willoughby and Biasiucci, passed by the same 32-24 margin. It directs ADEQ to conduct a biennial review of fuel formulations available under federal air quality standards, assess their air quality impact if adopted in Area A or C, and submit findings to the Governor, legislative leadership, and the Secretary of State by December 31 of each review year. The bill does not compel any change to current fuel blend requirements but establishes a formal legislative reporting loop on the question—one that runs parallel to a separate study examining the same blend for potential repeal.

The third fuel bill. House Bill HB2696, directing the Arizona Commerce Authority to treat fuel and gas price reduction as its primary mission through December 31, 2029, passed committee and was referred for engrossing. The measure instructs the ACA to collaborate with the oil and gas industry to produce a study examining the repeal of the state’s cleaner-burning gasoline blend, pipeline construction, a strategic oil and gas reserve, and the feasibility of building a refinery in Yuma County. A report to legislative leadership is due by October 1, 2026. Under the current statute, the Governor serves as the ACA board chairperson. Representatives Willoughby and Biasiucci, along with two Democratic members, did not respond to requests for comment by publication time.

All three bills now move to the Senate.