Garcia, who was 3 under on the back nine, had six birdies and one bogey at the 6,917-yard, par-71 Phoenix Country Club.
'I feel comfortable on this course,' said Garcia, who finished second at this event last year. 'Both years here I've shot 14 under and finished second. I played really well on the back nine and feel in control.'
Kuehne, who won last week's Franklin Templeton Shootout title with partner Jeff Sluman, had seven birdies and a bogey.
'I hit a lot of good shots,' said Kuehne. 'I hit it inside 10 feet nearly every hole. I have a lot positive feelings after last week.'
Australian Craig Parry and Denmark's Thomas Bjorn were among eight players a shot behind the leaders.
Britain's Lee Westwood finished with a 69. Defending champion Kaname Yokoo struggled and shot a 3-over 74.
American David Duval was 8 over before a sore back forced him to pull out of the tournament after seven holes.
'I can't continue like this,' said Duval. 'If I want to get good at this game, I've got to get healthy first.'
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