Arizona Senate leader voices concern over California’s proposed oil industry regulations

The leader of the Arizona State Senate has sent a letter to Gov. Gavin Newsom on Thursday expressing concern over proposals to further regulate the oil industry.

“Our state relies on California for over 1/3 of our fuel supply, and I’m concerned that the rush to pile on policies without considering implications to states like ours will further burden our citizens,” the letter from Senate President Warren Petersen said.

“While I recognize California’s right to regulate refineries in the state, these facilities should be viewed as critical national assets that are essential far beyond California’s borders.”

According to a report from the Institute for Energy Research , a nonprofit organization, Arizona and Nevada rely heavily on California refineries for transportation fuel, with high prices in California often reflected in Arizona and Nevada.

“Arizona has no significant oil reserves and no petroleum refineries while Nevada has just modest oil production and only one small refinery that processes 2,000 barrels of oil per day, producing just asphalt and road oil. Nevada gets its additional petroleum products from refineries in Los Angeles, the San Francisco Bay area and Salt Lake City, while Arizona receives its petroleum products by pipeline from Southern California and Texas,” the report said.

In the letter, Petersen noted concerns about refinery inventory requirements, turnaround times and maintenance limitations, and other proposed policies.

Earlier this month, Newsom announced a new proposal requiring oil refineries to keep a minimum supply of fuel reserves to avoid future supply shortages and price hikes for consumers.

The governor’s plan would direct the California Energy Commission to require petroleum refiners to follow the new guidelines. Newsom hopes the proposal will help keep supply and prices stable even when refineries undergo maintenance.

Penalties would be imposed on refiners who fail to follow the new guidelines.

“Given the dire impact these policies could have on states like Arizona and Nevada, we should, at minimum, have a dialogue to ensure your policies are based on sound economic principles and recognize our needs for reliable and accessible fuel supplies,” the letter said.

Newsom has proposed a special session this fall for lawmakers to address a package of energy bills he wants to be passed before the Legislature sessions adjourn on Saturday, according to the Los Angeles Times .

Newsom has not spoken publicly about the letter.

For the latest news, weather, sports, and streaming video, head to FOX40.