by Ethan Faverino | Feb 8, 2026 | Economy, News
By Ethan Faverino |
Arizona House Republicans on the Natural Resources, Energy, and Water Committee have taken action to address skyrocketing gas prices and utility bills, passing a sweeping package of bills designed to lower fuel costs, enhance energy reliability, and defend ratepayers.
Under the leadership of Chairman Gail Griffin (R-LD19), the measures align with the House Republican Majority Plan’s core priorities of unleashing economic prosperity, promoting government efficiency, and protecting individual rights and liberties.
The legislation, which advanced on a party-line vote with Democrats in opposition, targets the challenges faced by Arizona families, particularly in Maricopa and Pinal Counties, where severe summer fuel blend requirements have driven up prices at the pump. By prioritizing affordability and reliable power, these bills aim to ease the financial burden on households amid rising energy demand.
“The cost of living for Arizona families, including gas and electricity, continues to increase, and Republicans are acting,” stated Chairman Griffin. “This package puts affordability first by lowering fuel costs, protecting ratepayers from higher utility bills, and making sure Arizona has dependable power as demand grows. The Majority Plan is clear: government should work to ease the cost burden on families, not make them worse.”
Bills Tackling High Gas Prices
- HB 2145 (Rep. Griffin): Amends motor fuel statutes to empower the President of the Senate and Speaker of the House to jointly request EPA fuel waivers during shortages if the Governor does not act, providing a defense against price surges.
- HB 2400 (Reps. Willoughby, R-LD13, and Biasiucci, R-LD30): Implements a seasonal suspension of the state’s 18-cent gas tax from May through September in Maricopa and Pinal Counties. The bill ensures local governments are reimbursed for lost highway revenue through allocations from the Arizona Highway User Revenue Fund, including $27.588 million to counties, $39.93 million to cities and towns, and $5.082 million to larger municipalities. It also includes an emergency clause for immediate implementation and exempts the Department of Transportation from rulemaking for one year.
- HB 2696 (Rep. Willoughby): Directs the Arizona Commerce Authority to prioritize reducing fuel and gas prices as its primary objective for two years, expiring December 31, 2029. The authority must collaborate with the oil and gas industry to study repealing the cleaner-burning gasoline blend, building new pipelines, establishing a strategic reserve, and exploring in-state refineries, including reviving a proposed facility in Yuma County. Status updates will be provided to legislative committees, with a final report due by October 1, 2026.
- HB 2955 (Rep. Willoughby): Amends motor fuel standards to end the expensive summer fuel blend in populous counties, subject to EPA waiver under the Clean Air Act. It allows for gasoline compliant with ASTM D4814 and vapor pressure limits, addressing supply shortages and enabling lower-cost alternatives.
- HCM 2008 (Rep. Willoughby): A concurrent memorial urging Congress and the EPA to eliminate the federal gas tax on Arizona’s cleaner-burning gasoline in Maricopa and Pinal Counties from May to September or grant the EPA administrator emergency waiver authority for costlier blends. This recognizes Arizona’s progress toward National Ambient Air Quality Standards while highlighting the undue tax burden on specialized fuels.
Supporting these efforts are additional bills to promote long-term solutions:
- HB 2014 (Rep. Fink, R-LD27): Requires the Department of Environmental Quality (ADEQ) and Arizona Department of Agriculture to conduct air emissions modeling and feasibility studies on alternative gasoline blends, including federal reformulated, California phase 3, and conventional options. Reports must be published by September 30, 2027, with $100,000 appropriations each for modeling and studies.
- HB 2401 (Willoughby and Biasiucci): Mandates biennial reviews by ADEQ of fuel formulations available under federal standards, assessing air quality impacts in regulated areas, and submitting recommendations to the Department of Agriculture, the Governor, the President of the Senate, the Speaker of the House, and the Secretary of State by December 31 of each review year.
- HB 2428 (Griffin): Authorizes voluntary mobile emissions reduction credit programs, permitting emissions credits for nonroad engines under Clean Air Act guidelines, with permits issued by ADEQ for up to 20 years, supported by chambers of commerce, utilities, and Maricopa County.
“Today we heard from organizations with the time and resources to lobby against affordable prices for Arizona families, but not from the families paying more at the pump,” explained Majority Whip Julie Willoughby. “Working families cannot take time off to come to the Capitol and ask for relief; that is why we are here to help be their voices.”
“Eighteen cents a gallon may sound small to some, but it matters to families trying to make ends meet,” Willoughby added. “I will do everything in my power to deliver relief now while we continue working to fix the fuel blend and supply problems. Families need lower prices, not excuses.”
Bills Ensuring Energy Reliability and Ratepayer Protections
- HB 2331 (Reps. Marshall, R-LD7 and Heap, R-LD10): Renames and expands energy reliability statutes to require public power entities and service corporations to prioritize domestically produced fuels, minimize foreign reliance, and evaluate resources for affordability, reliability, and cleanliness. Defines “clean energy” to include low-emission sources like nuclear and natural gas, with reliable sources needing at least 50% capacity factor and rapid ramp-up capabilities. The bill emphasizes hydrocarbons and finds domestic sourcing essential for public health and safety.
- HB 2756 (Reps. Griffin and Blackman, R-LD7): Adds provisions for public power entities and electric corporations to report quarterly on new extra-high load factor customers, including interconnection requests and completions. These customers must be factored into load growth projections. The Arizona Corporation Commission (ACC) is directed to adopt rules on contracts, minimum billing, and pre-execution reviews to protect other ratepayers, excluding member-owned cooperatives. Requires cost-of-service studies within 180 days and an ACC workshop within 90 days to assess impacts on residential bills and potential new customer classes.
These bills now advance for further legislative consideration.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Feb 4, 2026 | Economy, News
By Matthew Holloway |
Arizona’s growing role as a national hub for data centers could be undermined by municipal regulations driven by concerns over water use, electricity demand, and land use, according to a new policy report released by the Goldwater Institute. The report, Data Centers: A Free Market Model for the Digital Future, argues that Arizona’s success in attracting data center investment stems from long-standing policy choices that favor predictable regulation, private property rights, and a stable legal environment.
The authors note that “artificial intelligence has dramatically accelerated these trends. Demand for data has increased exponentially. How communities, businesses, and policymakers respond to this transformation will shape economic competitiveness for decades to come.”
The report also cautions that a rise in local-level restrictions could threaten the state’s competitive position in the digital infrastructure sector.
William Beard, municipal affairs liaison at the Goldwater Institute and a co-author of the report, explained, “Data centers are the physical backbone of cloud computing, artificial intelligence, digital commerce, and national security. They are core infrastructure, no different in principle from transportation networks, energy production, or large-scale agriculture built to meet the demands of a particular era.”
Beard added that Arizona’s emergence as a leader in data center development has already produced economic benefits for the state. “Arizona is thriving as a leader in data centers, the state is reaping the economic benefits, and policymakers must take steps to ensure that continues,” he said.
According to the report, the Greater Phoenix region has become one of the top data center markets in the United States, with capacity projected to exceed 5,000 megawatts—an expansion of more than 500 percent. Goldwater attributes the dramatic growth to regulatory predictability and policies that encourage investment rather than discourage it, as well as “affordable land; reliable energy; and a legal environment anchored in strong private property rights.”
However, the report also warns, “Continued growth is no guarantee, especially as local governments threaten data centers with restrictive policies.”
Data center developments, such as the 290-acre data center Project Blue in Pima County and Project Baccara in Surprise, have sparked heated controversy at the municipal and county levels.
Citing growing municipal resistance to data center projects, Jen Springman, coalitions manager at the Goldwater Institute and a co-author of the report, said opposition is often rooted in misunderstandings about the impacts of infrastructure.
“Arizona’s advantage is increasingly threatened by a growing municipal-level regulatory backlash, often driven by misconceptions about water use and electricity demand,” Springman said.
Regarding water consumption, Springman said, “Modern data centers are among the most water-efficient industrial facilities ever built.”
The report further challenges claims that data center development is responsible for rising electricity prices. “Electricity prices, meanwhile, are not a data center problem; they are a policy outcome,” Springman said.
She added that misdirecting blame can lead to ineffective policy responses. “Blaming infrastructure for political energy choices obscures the real cause—and produces the wrong solutions,” Springman said.
Goldwater’s report argues that local restrictions do not reduce demand for digital services, but instead risk shifting investment to other states while increasing costs for consumers and businesses.
In a summary of the report’s conclusions posted to X, Goldwater stated, “The question is not whether data centers will exist, but whether Arizona will continue to lead—or retreat in the face of the future.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Ethan Faverino | Feb 3, 2026 | Economy, News
By Ethan Faverino |
According to the Joint Economic Committee, the United States recorded a total trade deficit of $56.82 billion in November 2025. This figure represented a substantial monthly increase of $27.62 billion from the revised October level, reflecting a sharp widening in the shortfall.
Despite the month-over-month surge, the November deficit stood 27% below the 12-month average, indicating that the broader trend continued to show improvement relative to recent periods.
The rise in the overall deficit was driven largely by developments in goods trade, where the shortfall expanded significantly. The goods trade deficit reached $86.90 billion in November, up $27.92 billion from October, and remained 18% below the 12- month average.
In contrast, the services sector provided a counterbalance, posting a surplus of $30.08 billion. This service surplus rose modestly by $298 million from the previous month and stood 7% above the 12-month average.
Total exports for November declined to $292.05 billion, down $10.87 billion from October, though the figure remained 3% above the 12-month average. Goods exports fell to $185.64 billion, reflecting a decrease of $11.10 billion month-over-month, while services exports edged higher to $106.41 billion, up $237 million.
On the import side, total imports climbed to $348.88 billion, an increase of $16.75 billion from October, yet levels are still 4% below the 12-month average. Goods imports rose to $272.54 billion, up $16.81 billion, while services imports dipped slightly to $76.34 billion, down $61 million.
Compared with November 2024, the November 2025 trade deficit showed improvement, narrowing by 28.75% to $79.75 billion. Exports grew 5.88% year-over-year, while imports declined 1.89% over the same period.
Over the rolling 12 months through November 2025, the cumulative total trade deficit stood at $936.45 billion. This reflected a goods trade deficit of $1.27 trillion, partially offset by a services surplus of $335.80 billion. Total exports during this period reached $3.42 trillion, with goods accounting for $2.19 trillion and services $1.23 trillion. Total imports amounted to $4.35 trillion, including $3.46 trillion in goods and $892.72 billion in services.
Among major trading partners, the largest goods trade deficits over the 12-month period occurred with China, with net exports of -$214.61 billion (representing 17.12% of the total goods deficit), Mexico at -$197.36 billion (15.74%), and Vietnam at -$171.62 billion (13.69%).
The U.S. recorded its largest goods trade surpluses with the Netherlands ($59.99 billion), the United Kingdom ($30.39 billion), and Hong Kong ($26.89 billion).
The leading export destinations were Mexico ($334.37 billion), Canada ($331.25 billion), and China ($110.22 billion), which together counted for 35.84% of total U.S. exports. Oppositely, the top sources were Mexico ($531.73 billion), Canada ($386.75 billion), and China ($324.83 billion), comprising 36.37% of all U.S. imports.
Year-over-year price inflation for exports was 3.29%, with agricultural exports rising 2.64% and non-agricultural exports increasing 3.29%. Import price inflation was notably higher at 7.58% overall, driven by an 8.25% increase in non-fuel imports, while fuel prices declined 1.72%.
Exchange rate movements between November 2024 and November 2025 showed the U.S. dollar weakening against the Chinese yuan 2.7%, the euro 9.6%, the British pound 4.5%, and the Mexican peso 10.5% while strengthening against the Japanese yen 4.6%.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Feb 1, 2026 | Economy, News
By Matthew Holloway |
Arizona Senate Majority Whip Frank Carroll (R-LD28) introduced a measure on Tuesday, urging the U.S. Congress to clearly define and limit the Environmental Protection Agency’s (EPA) regulatory authority. Carroll and his cosponsors argue that ambiguous federal power threatens jobs and economic growth in Arizona. The proposal, SCM 1004, was advanced by the Arizona Senate Republican Caucus earlier this week.
Carroll’s measure calls on Congress to affirm its role in setting national environmental policy and to draw explicit boundaries around the EPA’s authority under federal law. The memorial highlights that, under the Clean Air Act, the EPA is charged with setting and reviewing National Ambient Air Quality Standards (NAAQS) every five years to protect public health and welfare, but argues that compliance requirements have grown burdensome for businesses and workers.
“Americans deserve clean air, land, and water, but they also deserve an economy that can grow without unnecessary federal interference,” Carroll said in a statement distributed by the Arizona Senate Republican Caucus. He added that the measure urges Congress to ensure EPA regulations are “grounded in law and sound science” and do not impose undue economic restrictions.
In additional remarks included in the memorial, Carroll said he is seeking to define the limits of EPA authority to prevent what he described as regulatory overreach.
“I am working to clearly define the EPA’s powers to prevent regulatory overreach that negatively impacts Arizona’s economy,” Carroll said. “While the Clean Air Act allows for specific emissions regulations, the EPA must not exceed its authority or violate fundamental principles of separation of powers. By preventing bureaucratic overreach, we can protect both the environment and the economic opportunities Arizona families and businesses rely on.”
SCM 1004 directs the Arizona Secretary of State to transmit copies of the memorial to leadership in both chambers of Congress and all members of Arizona’s federal delegation. The measure notes that while the EPA’s mission is to enforce environmental laws as intended by Congress, concerns over overreach have prompted states to call for clearer statutory limits on the agency’s powers.
Carroll’s push reflects broader national debates over the scope of federal environmental regulation. Critics of recent EPA proposals have warned that aggressive regulatory action could affect industries including agriculture, energy production, and water resources. Such debates have included congressional hearings examining the consequences of EPA actions on sectors like American agriculture and rural economies.
The memorial challenges key assumptions underlying EPA policies formulated under Democratic administrations and proponents of policy such as the ‘Green New Deal’, stating:
- “Greenhouse gases like CO2 and methane are not acutely toxic like other hazardous pollutants and have no direct impact on human health;”
- “There is no consensus as to whether global warming is a problem or a benefit or how current temperatures fit into the broader climate context;”
- “Global temperatures, droughts, floods and hurricanes have not increased with increasing global CO2 emissions;”
The memorial further refutes the EPA’s authority regarding greenhouse gas emissions, stating directly: “The EPA has no explicit statutory authority to regulate greenhouse gases.”
The memorial comes amid ongoing statewide discussions about the balance between environmental protection and economic growth, with Arizona lawmakers questioning the appropriate reach of federal agencies in areas ranging from air and water quality to land use and energy development.
SCM 1004 was co-sponsored by a group of Republican Arizona Senators, including Hildy Angius (R-LD30), David Gowan (R-LD19), Kevin Payne (R-LD27), Janae Shamp (R-LD29), and Thomas “T.J.” Shope (R-LD16).
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Ethan Faverino | Jan 28, 2026 | Economy, News
By Ethan Faverino |
Arizona State Representative Chris Lopez (R-LD16) introduced House Bill 2826, which would exempt materials such as concrete, used in the improvement and maintenance of agricultural irrigation canals, from Arizona’s transaction privilege tax on prime contracting.
The “No Tax on Concrete” bill aims to reduce costs for farmers, strengthen water conservation efforts, support food affordability, and boost irrigation efficiency by conserving water resources critical to Arizona’s agricultural sector as the state faces ongoing water security challenges.
Specifically, HB 2826 would establish a targeted exemption under the prime contracting classification in ARS § 42-5075 for materials and supplies used to improve and maintain ditches, irrigation lines, and canals on agricultural lands.
Concrete-lined canals offer significant benefits over traditional unlined earthen canals. Unlined systems can lose 30%-50% or more of conveyed water volume to seepage into permeable soils.
By contrast, concrete lining reduces these losses dramatically, increases flow velocity, minimizes erosion and weed growth, and lowers long-term maintenance needs. Such projects can save thousands of acre-feet of water annually, providing a highly cost-effective approach to water conservation.
Projects funded by the Water Infrastructure Finance Authority of Arizona (WIFA) and awarded to irrigation districts—Buckeye Water Conservation & Drainage District, San Carlos Irrigation & Drainage District, and Roosevelt Irrigation District—are anticipated to conserve between 135,000 and 368,864 acre-feet over their lifetimes, at only an estimated cost of $2 to $3 per acre-foot.
“The House Republican Majority Plan is focused on affordability, and that starts with food on the table and the cost of water to produce that food,” stated Rep. Lopez. “Converting dirt canals to concrete-lined canals saves thousands of gallons of water, which reduces pumping costs, energy, and other expenses that go into the price of food. Eliminating the tax on concrete and other contracting costs to convert these canals to concrete lining not only helps to reduce the costs even further but also helps to conserve water at a time when water conservation has never been more critical for our state.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Jan 27, 2026 | Economy, News
By Matthew Holloway |
Arizona State Representative Chris Lopez (R-LD16) is leading legislation to establish a Commercial Property Assessed Capital Expenditure (C-PACE) program in Arizona, aiming to expand private investment, modernize infrastructure, and support economic growth in Pinal County and across the state.
The legislation, House Bill 2824, would authorize local governments to offer C-PACE financing for commercial and industrial properties. The market-driven tool allows property owners to access low-cost, long-term private capital for projects that improve energy efficiency, conserve water, enhance resiliency, and fund infrastructure upgrades.
According to HB 2824, the “C-PACE Program” in Arizona would be defined as “a special assessment program that provides commercial property assessed capital expenditure financing for eligible improvements” that local governments may establish through voluntary special assessment agreements with property owners.
Eligible projects under the proposed program include investments in energy systems, water and wastewater infrastructure, building retrofits, manufacturing facilities, agricultural processing, and logistics development, all sectors central to rapid economic growth.
“Pinal County is one of the fastest-growing regions in Arizona, and we need smart, market-driven tools to help our communities keep pace,” Lopez said. “C-PACE unlocks private capital for major commercial and industrial projects without raising taxes or creating new government debt.”
Unlike traditional public financing, which leans heavily on incurring public debt, C-PACE financing relies entirely on private investment. Participation in the program would allow property owners to repay the financing through a special assessment tied to the property, a structure which advocates say provides long-term certainty for lenders and developers while shielding taxpayers.
Similar Commercial Property Assessed Capital Expenditure (C-PACE) frameworks have already been authorized in other states, including North Carolina, Idaho, and Arkansas. Arizona would join over 40 states that have authorized C-PACE, according to the release from Lopez, “helping unlock billions of dollars in private investment nationwide.”
“As Pinal County continues to attract major employers and advanced manufacturing facilities, we must ensure our communities have the infrastructure to support that growth,” Rep. Lopez added. “This legislation gives cities and counties another tool to compete, attract investment, and build for the future.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
