Utah lawmakers said they were focused on affordability in 2026, and state leaders now have their eyes on the gas pump.
Gov. Spencer Cox, Speaker of the House Mike Schultz and Senate President Stuart Adams, alongside other lawmakers, announced sweeping agreements with the state’s oil and gas industry to make more gasoline, which they say will increase supply and drive down costs.
“We are investing in refinery capacity and expanding upgrades to ensure Utah-grown energy stays right here in Utah,” Cox said.
Under the agreement, major Utah petroleum producers have committed to refining an additional 23,500 barrels of oil per day within the next five years, something Cox said would “benefit the entire Intermountain region.”
That increased supply, Schultz said, could lead to 800,000 more gallons of fuel heading to the Utah market each day.
“When gas prices go up, everything goes up,” he said. “Groceries cost more, running a small business costs more, driving your kids to and from school, from practice to church, it all costs more.”
Schultz also touted lawmakers' efforts to pass a 15% cut to the state’s gas tax, which equates to about 6 cents per tank. If passed, the cut would go into effect on July 1, 2026.
It’s all in an effort to deliver on growing concerns about recent increases in the cost of living and housing. Plus, lawmakers have been focused on increasing Utah’s domestic energy production for a few years. Other western states, like California, have moved toward more renewable options, an approach Schultz criticized.
“Refineries are shutting down, and it's tightening supply across the entire region,” he said. “And when supply tightens, prices go up. We're not going to allow the poor planning in other states to dictate what families pay at the pump here in Utah.”
While Republicans tout the agreement as a boon for affordability, there are perennial concerns about air quality along the Wasatch Front, some of which are specifically linked to the petroleum refinery operations on Salt Lake City’s west side.
While these agreements won’t change how many cars are on the road, Cox said it does specifically incentivize the production of more tier 3 gas, a cleaner-burning gasoline. However, HB575 does not lay out any new incentives for more tier 3 gas.
“Our tailpipes are still our number one polluter,” he said. “Getting more tier 3 gasoline in the state is just going to help us and lower prices.”
According to the Utah Office of Energy Development, tier 3 fuels could decrease tailpipe emissions in cars made in 2017 or later by up to 80%.
Also on the environmental front, Cox announced a partnership with neighboring Idaho to better manage the shared Bear River watershed, which flows through Utah, Idaho and Wyoming. It comes on the heels of a feud between the two states over the gas tax bill, which Idaho officials claimed would have increased gas prices in their state in its original form. Schultz said instead of taxing exports, negotiations between the states led to the agreement to increase gas supply and protect one of the state’s largest water resources.
“While we started as a conversation about lowering gas prices, we've secured something even bigger,” Schultz said. “Because Idaho wanted to be part of the discussion, it forced important conversations that ultimately brought people to the table and are going to help us secure additional water protections and resources for the people of Utah.”
Cox clarified that while the agreement does not secure more water rights for Utah, it does focus on how water rights are managed, especially in a high water year where there might be excess flows in the Bear River.
“What [the agreement] gets us is a partner who is also committed to helping us with all of our Bear River issues, helping us with the Great Salt Lake,” Cox said. “This is something that has needed some attention for a long time, and regardless of how we got the attention, it's good to have a friend and a partner.”
Cox signed the memorandum of understanding with Idaho on Feb. 23, and a spokesperson for the governor said Idaho Gov. Brad Little is expected to sign the agreement soon.
