Silver State Times

Nevada Gov. Joe Lombardo announced that he and Arizona Gov. Katie Hobbs sent a letter to California Governor Gavin Newsom. The letter expressed concerns about ABX2-1 and other legislation on refinery inventory supplies being reviewed in California's special session.

According to a press release by Lombardo, both governors have voiced concerns that ABX2-1 and similar bills could increase fuel prices and negatively impact the regional economy.

"We’re concerned that mandating refinery inventory would directly raise the cost of fuel for all of our constituencies and create further economic instability in the region," the letter stated.

Lombardo said lowering fuel costs is a bipartisan issue.

"The people of Nevada and Arizona should not have to foot the bill for California’s misguided policies — especially when it comes to higher gas prices," said Lombardo. "Lowering fuel costs is a bipartisan issue, and I’m grateful to partner with Gov. Hobbs as we fight back against policies that will raise prices and cause regional economic disruption. I urge Gov. Newsom and the California legislature to reconsider this harmful legislation during their special session and to include Nevada and Arizona in policy discussions moving forward."

Lombardo and Hobbs cite a report from the California Energy Commission, which indicates that ABX2-1 might create artificial shortages in downstream markets, potentially raising costs for consumers in Arizona and Nevada. The letter states that this conclusion alone is "deeply troubling and warrants bipartisan, regional communication on this legislation before proceeding."

"Arizonans are struggling with the high cost of living, we can’t afford yet another price hike," said Hobbs. "I urge Governor Newsom and the California legislature to reconsider this legislation that could slash Arizona’s gasoline supply, raise prices at the pump, and threaten Arizona’s strong economic growth. I’m glad to work with Governor Lombardo on this critical issue, and hope we can come together as a region to deliver lower fuel costs to all of our constituents."

According to a press release by Hobbs, the letter also notes warnings from refiners about inventory mandates that might cause supply shortages and refinery shutdowns.

"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 taking action on this type of legislation until thorough policy conversations are had with industry leaders and our state energy offices," the letter stated. "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."