by Ethan Faverino | Apr 1, 2026 | Economy, News
By Ethan Faverino |
Arizona House Majority Whip Julie Wiloughby (R-LD13) praised a recent Trump administration decision recognizing the significant impact of internal emissions on Arizona’s ability to meet federal air quality standards.
The ruling grants the Phoenix metropolitan area relief from stricter federal requirements, opening the door for potential long-term reforms to the state’s expensive summer gasoline blend mandated in Maricopa and Pinal Counties.
The decision, issued last week by the U.S. Environmental Protection Agency (EPA), found that the Phoenix-Mesa nonattainment area would have met the 2015 ozone National Ambient Air Quality Standards (NAAQS) if not for emissions originating outside the United States. This finding, under Section 179B of the Clean Air Act, prevents reclassification to a more severe status. It acknowledges that a major share of emissions affecting Arizona is beyond the state’s control.
For months, Willoughby has collaborated with local and federal officials to pursue reforms addressing Arizona’s higher summer fuel costs. In January, she sent a letter to the EPA initiating discussions on permanent changes to lower costs for families while maintaining compliance with air quality standards.
“The main reason drivers in Maricopa and Pinal counties pay more for gas in the summer is that these areas are forced to use a special boutique blend made only for Arizona,” explained Willoughby. “It costs more to produce, limits supply, and leaves our state more vulnerable to price spikes. The question is whether this requirement is still doing anything meaningful to improve air quality. If it is not, then Arizona families are being forced to pay more for little to no benefit.”
Willoughby noted that industry operations are cleaner and national fuel standards have evolved since Arizona’s blend was last updated. “Industry is cleaner today than it was when Arizona’s blend was last updated, and fuel standards nationwide have changed significantly since then. There is a strong possibility that Arizona can move to a lower-cost fuel option without sacrificing air quality. If the evidence supports that conclusion, we should act immediately.”
To advance the issue, Willoughby introduced a package of five measures aimed at lowering fuel costs, evaluating compliant fuel options, and requiring the state to adopt a lower-cost fuel once federally approved.
“In order to change the blend, Arizona must submit a request to the EPA to revise our State Implementation Plan and show that we can still meet federal air quality standards with the new blend,” added Willoughby. “The modeling used to make that demonstration must take into account the fact that a major share of the emissions affecting our state comes from outside our borders and is beyond Arizona’s control. The Trump Administration’s recent decision recognizing international transport acknowledges this impact and gives Arizona more room to reevaluate whether our current fuel requirements are still justified. With the federal government signaling openness, this may be our best and only opportunity to get this done.”
In February, Willoughby requested that the Maricopa Association of Governments (MAG) model the impacts of switching from Arizona’s current boutique gasoline blend (Reid Vapor Pressure of 7.0 psi) to a more widely available, lower-cost blend with an RVP of 7.4 psi.
Preliminary modeling completed in March showed that the switch would increase the maximum ozone concentration in the Phoenix metropolitan area by between zero and 0.01 parts per billion.
“That is a negligible impact and more than enough reason to move this conversation forward,” continued Willoughby. “Just as important, Governor Hobbs’ administration already has these results. MAG provided the modeling to her Department of Environmental Quality, which means the Governor could begin acting on this now if she wanted to. She does not need to wait. She does not need more excuses. If Governor Hobbs is serious about lowering fuel costs, she should direct her agency to act immediately.”
In a follow-up letter to MAG Director of Environmental Planning, Matt Poppen, Willoughby highlighted the positive results from the Comprehensive Air Quality Model with Extensions (CAMx v7.32) and Community Multiscale Air Quality (CMAQ v5.5) analyses. The CAMx results showed no changes in the 2023 design value attainment at any monitoring site, while CMAQ predicted a maximum impact of just 0.01 ppb at three sites.
Willoughby also requested additional modeling for a Federal Reformed Gasoline blend with an RVP of 7.8 psi, used in some other western states, and discussions on next steps for a State Implementation Plan revision.
“The modeling is favorable. The facts are lining up in Arizona’s favor. We should seize this opportunity and make the case for lasting gas affordability now,” concluded Willoughby.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Apr 1, 2026 | Economy, News
By Matthew Holloway |
The Arizona Chamber of Commerce & Industry and the Goldwater Institute hosted a delegation of Missouri policymakers in Phoenix to discuss economic competitiveness, innovation, and pro-growth policy, according to a joint release.
The meeting focused on Arizona’s approach to building a competitive environment for emerging industries and long-term economic growth.
The discussion followed the Chamber’s recent launch of its AZ AI Leadership Initiative, which aims to strengthen Arizona’s position in emerging technologies and the broader digital economy.
Arizona has seen rapid expansion in AI and data center infrastructure, driven by growing demand for computing power and cloud services. Major investments from companies such as Taiwan Semiconductor Manufacturing Company (TSMC), which is constructing advanced semiconductor fabrication facilities in Phoenix, along with large-scale data center developments by Google and Meta Platforms in Mesa, and Amazon Web Services in Goodyear, have helped position the state as an emerging hub for both semiconductor production and AI-related computing capacity.
Participants included legislative leaders, policy experts, and representatives from the Arizona Commerce Authority, who shared insights into the state’s policy framework and economic development strategies.
“Arizona’s growth didn’t happen by accident,” said Courtney Coolidge, executive vice president of the Arizona Chamber of Commerce & Industry. “It reflects deliberate policy choices that prioritize certainty, competitiveness, and a regulatory environment where businesses can invest, innovate, and scale.”
Arizona lawmakers participating in the meeting included House Speaker Steve Montenegro (R-LD29), Majority Leader Michael Carbone (R-LD25), Rep. Jeff Weninger (R-LD13), Rep. Justin Wilmeth (R-LD2), chair of the House Artificial Intelligence and Innovation Committee, Senate President Pro Tempore T.J. Shope (R-LD16), and Senate Majority Whip Frank Carroll (R-LD28).
“Arizona has made a conscious decision to lead on innovation rather than wait for other states to set the pace,” Montenegro said. “That kind of alignment and forward-looking policy environment allows industries to grow and scale here.”
Lawmakers and policy leaders highlighted sectors including advanced manufacturing, semiconductors, aerospace, autonomous systems, and emerging technologies as areas where Arizona has seen sustained growth.
“Arizona’s success in attracting major investment is tied directly to our focus on advanced manufacturing, infrastructure, and supply chain strength,” Carbone said.
Weninger pointed to Arizona’s regulatory and tax structure as a factor in business investment.
“Companies are looking for certainty,” Weninger said. “Arizona’s predictable regulatory environment and competitive tax structure give businesses the confidence to invest and expand.”
Participants also discussed the role of infrastructure, water policy, and land use in supporting statewide growth. “We’ve been intentional about making sure economic development isn’t concentrated in one region,” Shope said.
Carroll said Arizona’s approach to economic development has positioned the state for continued expansion, particularly in emerging industries.
Wilmeth emphasized the importance of flexibility in regulating new technologies. “We’ve taken a thoughtful approach to emerging technologies by avoiding premature regulation,” he said.
Victor Riches, president and CEO of the Goldwater Institute, said policy certainty and deregulation remain key factors in supporting innovation.
“As emerging technologies continue to reshape industries, policy certainty and deregulation matter more than ever,” Riches said. “Arizona needs to ensure an environment where innovation can move forward.”
The Missouri delegation included state senators and policy advisors, including Sen. Travis Fitzwater, Sen. Maggie Nurrenbern, Sen. Karla May, Sen. Barbara Anne Washington, Sen. Jamie Burger, policy advisor to Gov. Mike Kehoe, Johnathan Shifflett, and representatives from the Missouri Chamber of Commerce, Karen Buschmann, and Jared Hankinson.
The meeting explored how elements of Arizona’s economic policy framework could be adapted in other states and how interstate collaboration could support broader economic growth.
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 Staff Reporter | Mar 26, 2026 | Economy, News
By Staff Reporter |
Republicans in the Arizona Senate are moving on legislation they believe will reduce gas prices.
A strike everything amendment to HB 2400 proposes to mitigate price spikes at the pump by filing an emergency waiver to increase Maricopa County’s fuel supply during emergencies.
Arizona policymakers anticipate prices to spike with pending supply constraints due to a forecasted California refinery closure in April. Federal environmental regulations require Valley drivers to use a more expensive and limited specialized fuel blend year-round, a requirement that expands to affect residents elsewhere in the state during the summer months.
Should the bill be enacted, the Department of Environmental Quality and the Arizona Department of Agriculture would submit an emergency fuel waiver to the Environmental Protection Agency (EPA) within 30 days.
State Sen. Shawnna Bolick (R-LD2) introduced the strike everything amendment. Bolick said the state does have recourse, but it’s up to executive leadership to allow for the remedy to occur.
“We see the warning signs. Refineries are shutting down, and if we don’t act now, prices will go up. HB 2400 will make sure Arizona can quickly access additional fuel when shortages hit, instead of waiting and hoping for relief,” said Bolick in a press release.
According to Stanford University’s Woods Institute for the Environment, the California refinery shutdowns were caused by multiple factors: depleting crude oil fields, declining in-state gasoline sales, consolidating oil infrastructure, and increasing availability of imported finished fossil fuel products.
A similar issue occurred in 2023. Gov. Katie Hobbs declined to file an emergency fuel waiver with the Biden administration despite a request from petroleum refiner HF Sinclair.
The company’s senior vice president, Jerry Miller, advised Hobbs in a letter of a critical supply shortage of several counties’ Cleaner Burning Gasoline (CBG), the special gasoline formulations required in certain parts of the state by the EPA under the Clean Air Act (CAA).
These formulation requirements are laid out in Arizona’s State Implementation Plan (SIP). The SIP establishes different CBG requirements depending on the season. CBG is required in Maricopa County and certain parts of Pinal and Yavapai counties year-round (called “Area A”). CBG requirement expands to include more of Pinal County during the summer months of May through September (called “Area C”).
As in 2023, it will mostly be Maricopa County drivers who will feel the brunt of forecasted supply constraints.
Senate lawmakers will also consider HB 2955, which would expand the state’s fuel options by modifying the state’s fuel standards for CBG in order to expand supply options.
Sen. Bolick shared that she and other Republican lawmakers have laid the groundwork with the Trump administration to ensure that the fuel standard updates and emergency fuel waiver would be processed immediately upon filing.
“We are coordinating with the Trump Administration so Arizona is ready to act the moment these bills are signed into law,” said Bolick. “This is about getting ahead of the problem and making sure families aren’t stuck paying the price for decisions made in other states.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Matthew Holloway | Mar 15, 2026 | Economy, News
By Matthew Holloway |
Inflation rose slightly in February, with the Consumer Price Index reaching 2.41 percent year over year, according to the latest monthly inflation update released Wednesday by the Joint Economic Committee.
The committee’s report found that CPI-U inflation increased from 2.39 percent in January to 2.41 percent in February. Core CPI, which excludes food and energy prices, declined slightly from 2.50 percent in January to 2.46 percent in February. The Federal Reserve targets inflation of roughly 2 percent over the long term, making CPI readings near that level a key benchmark for policymakers.
Economists often monitor both measures when assessing inflation trends. Headline CPI reflects the full range of consumer price changes, including food and fuel, while core CPI removes those categories because they can fluctuate sharply from month to month due to factors such as commodity markets and weather-related supply disruptions.
The update noted that the figures do not include potential increases in energy prices that could result from ongoing military activity in the Middle East.
Food prices continued to rise faster than overall inflation. Year-over-year food price inflation reached 3.06 percent, an increase of 0.45 percentage points compared with the previous month.
Energy prices also increased, with year-over-year energy inflation reaching 0.48 percent, up 0.65 percentage points from the prior reading. Energy prices can shift quickly due to changes in global supply, geopolitical developments, and seasonal demand.
Regionally, inflation rates varied across the country but declined from January to February in each region measured by the report. Inflation was highest in the Midwest at 2.8 percent, followed by the Northeast and West at 2.7 percent each, while the South recorded the lowest rate at 1.8 percent.
Regional CPI comparisons reflect differences in housing costs, transportation expenses, energy prices, and local economic conditions that influence consumer spending patterns across the country.
The report also found that wages increased when adjusted for inflation.
Real weekly earnings for all employees rose 1.67 percent year over year, representing a 0.98 percentage point increase from the previous reading. Real hourly earnings increased 1.42 percent year over year, a 0.16 percentage point increase.
The Consumer Price Index, compiled by the U.S. Bureau of Labor Statistics, tracks price changes across a basket of goods and services commonly purchased by households, including housing, food, transportation, medical care, and other everyday expenses.
The index is widely used by policymakers, businesses, and economists to measure inflation trends, evaluate purchasing power, and guide economic policy decisions.
Arizona residents experience many of the same price trends reflected in national CPI data, including changes in food, energy, and consumer goods prices that affect household budgets across the state.
The full February inflation report is available from the Joint Economic Committee here.
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 | Mar 10, 2026 | Economy, News
By Ethan Faverino |
The U.S. labor market experienced a sharp downturn in February 2026, with nonfarm payroll employment declining by 92,000 jobs, according to the latest Employment Situation report from the Bureau of Labor Statistics, released March 6. This marked a significant reversal of January’s stronger-than-expected performance and fell well short of economists’ consensus forecasts for modest gains.
The Joint Economic Committee highlighted the figures in its Monthly Employment Update, noting that the decline consisted of -86,000 jobs in the private sector and -6,000 in government.
The headline unemployment rate (U-3) rose 0.1% to 4.4% while the broader U-6 measure—which includes underemployed workers—improved slightly, falling 0.2% to 7.9%. The labor force participation rate dipped 0.1% to 62%, and the employment-to-population ratio decreased to 59.3%.
Significant downward revisions to prior months compounded the weaker outlook. December 2025 was revised to show a net loss of 17,000 jobs (from an initial gain of 45,000), and January 2026 was adjusted down by 4,000 to 126,000 jobs. Combined, these revisions reduced reported employment gains for December and January by 69,000 jobs.
Sector performance in February showed mixed results. Gains were led by financial activities (+10,000 jobs) and other services (+8,000 jobs). Losses were concentrated in private education and health services (-34,000 jobs, influenced by strike activity in health care) and leisure and hospitality (-27,000 jobs).
On a year-over-year basis (February 2025 to February 2026), total nonfarm payroll rose by approximately 156,000 jobs, with strong contributions from private education and health services (+658,000) and leisure and hospitality (+126,000). However, notable declines occurred in federal government (-314,000) and trade, transportation, and utilities (-191,000).
Wage growth remained positive amid the slowdown. For all private non-farm employees, average hourly earnings increased 3.84% year-over-year to $37.32, while average weekly earnings rose 4.14% to $1,280.08. Among production and nonsupervisory employees, hourly earnings grew 3.69% to $32.03, and weekly earnings advanced 4.31% to $1,082.61.
The latest Job Openings and Labor Turnover Survey data (for December 2025) indicated cooling demand, with nonfarm job openings falling by 386,000 to 6.54 million. Hires rose by 172,000 to 5.29 million, while separations increased by 107,000 to 5.25 million, including modest gains in quits and larger rises in layoffs and discharges.
The data points to emerging softness in the labor market, influenced by temporary factors including the severe winter weather and significant strike activity in health care, though broader indicators like wage growth and a still-low unemployment rate suggest resilience.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Feb 28, 2026 | Economy, News
By Matthew Holloway |
The National Federation of Independent Business (NFIB) Arizona issued a policy statement this week urging state lawmakers to prioritize tax certainty for small businesses in the upcoming legislative session.
In a press release, NFIB Arizona urged Arizona policymakers to “take action and align Arizona’s income tax code with the small business provisions that are permanent in federal law,” and consider tax policy changes this year. The group argued that stable and predictable tax policy is essential for small businesses to plan, invest, and grow.
NFIB Arizona also highlighted concerns about potential tax increases and shifting tax policy, emphasizing that uncertainty in state taxes could discourage investment and expansion by small businesses across Arizona. The organization represents thousands of small business owners in the state.
In its release, NFIB Arizona pointed to the Arizona House and Senate GOP plan to protect taxpayers during the filing season, stating that lawmakers should avoid policies that could lead to higher costs or an unstable tax environment for small business operators.
“It’s good to hear that the legislative majority has the back of small business and will not allow for a surprise tax increase for the 2025 tax year,” NFIB State Director Chad Heinrich said in a statement. “That’s great for 2025, which is in the books.”
He added, “Small businesses are actively operating in 2026 without having the certainty needed to make investments now. We will continue to urge lawmakers to take action and align Arizona’s income tax code with the small business provisions that are permanent in federal law so that Main Street can operate and grow their businesses with certainty.”
NFIB Arizona’s statement follows an ongoing debacle at the Arizona State Capitol over the state’s conformity with 2025 federal tax changes between the Republican-led legislature and Democrat Governor Katie Hobbs. Hobbs vetoed a Republican bill, HB 2785, which would have brought Arizona’s income tax law into full conformity with the federal Internal Revenue Code on Feb. 12. The group said tax certainty would help small businesses make long-term hiring and investment decisions.
At the time, the NFIB wrote in a statement, “Twice, the Legislature has taken responsible action to protect hardworking Arizonans from tax uncertainty. Twice, Governor Hobbs has chosen political gamesmanship instead—turning something as mundane as tax conformity into a partisan game.”
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.
