Calif. proposal would cause jump in gas prices, Nevada gov. warns
Pump number 96 is seen outside of Terrible's Road House, the world's largest Chevron gas station, in Jean, Nev., Friday, July 6, 2018.,
Tuesday, Sept. 10, 2024 | 2:11 p.m.
Nevada Gov. Joe Lombardo and Arizona Gov. Katie Hobbs sent a joint letter to California Gov. Gavin Newsom expressing concerns that a proposal being considered in the California Legislature “would raise fuel prices and disrupt the regional economy,” Lombardo’s office said today in a news release.
The bill — ABX2-1 — would authorize California’s energy commission to “develop and impose requirements for refiners operating in the state to maintain minimum levels of inventories of refined transportation fuels meeting California specifications.”
Newsom convened the California Assembly for a special session specifically to address gas prices.
“We must stop oil companies from raking in record profits at the expense of Californians,” Speaker Robert Rivas, D-Salinas, said in a statement. “During this important special session, the Assembly will convene public hearings that thoroughly vet proposals. We’ll hear from experts and ensure that the public has a voice in the process.”
Lombardo, a Republican, and Hobbs, a Democrat, said the California proposal wouldn’t accomplish its goal.
“In their recent report, the California Energy Commission (CEC) explicitly states that SB 950, now reintroduced as ABX2-1, ‘may artificially create shortages in downstream markets,’ which would raise costs for consumers in Arizona and Nevada,” the joint letter read. “This conclusion alone is deeply troubling and warrants bipartisan, regional communication on this legislation before proceeding.”
Nevada, Arizona and California all have gas prices above the national average of $3.26 a gallon, according to data from the American Automobile Association.
“For the good of our neighboring constituencies, and for the greater good of consumers across the West, we ask that you reevaluate mandating refinery inventory and delay acting on this type of legislation until thorough policy conversations are had with industry leaders and our state energy offices,” the letter says. “Both the Arizona Governor’s Office of Resiliency and the Nevada Governor’s Office of Energy stand ready to assist in finding viable regional energy solutions that lead to lowered fuel costs.”