Arizona and Nevada unite against Newsom’s refinery bill concerns

On September 10, Arizona Governor Katie Hobbs and Nevada Governor Joe Lombardo jointly expressed their concerns regarding California's ABX2-1 legislation, which could lead to increased gas prices in their states. The bill would empower the California Energy Commission to enforce inventory requirements on refiners, potentially causing supply shortages and higher transportation costs. Both governors emphasized that their states rely heavily on California's fuel supply, making them vulnerable to any disruptions caused by the new regulations. In their letter to California Governor Gavin Newsom, Hobbs and Lombardo highlighted the negative impact of the proposed legislation on the economies of Arizona and Nevada. They argued that the increased regulatory burdens on refiners could lead to higher consumer prices and economic disruption in their states. The governors called for a reconsideration of the bill, stressing the importance of maintaining affordable fuel costs for their constituents. The letter also pointed out that refiners have indicated that the inventory mandates could result in supply shortages and potential operational shutdowns. This situation raises significant concerns for both states, as they are already grappling with high living costs and cannot afford further price hikes at the pump. In response, Governor Newsom defended the legislation, claiming it would ultimately save consumers in California, Arizona, and Nevada from price spikes caused by refinery supply issues. He argued that the proposal is a necessary step to stabilize fuel prices and ensure a reliable supply for all three states.