Arizona, Nevada Governors warn California's Newsom that bill may hike gas prices in their states

With fuel costs already straining consumers, Hobbs and Lombardo stressed that any further price increases could harm the economic stabilityPhoto byRock StaaronUnsplash

In a bipartisan effort to address the rising cost of fuel and protect regional economic stability, Arizona Governor Katie Hobbs and Nevada Governor Joe Lombardo have jointly called on California Governor Gavin Newsom to reassess SB 950. The proposed California legislation could significantly reduce gasoline supplies to Arizona and Nevada, potentially leading to higher gas prices for consumers in both states.

The letter, co-authored by Governors Hobbs and Lombardo, was sent during California's special legislative session, where SB 950 is being considered. The bill has raised alarms, as it threatens to cut fuel exports from California to neighboring states, which rely on California's refineries for a substantial portion of their gasoline supply.

"Arizonans are struggling with the high cost of living; we can’t afford yet another price hike," said Governor 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."

Governor Lombardo echoed similar concerns, emphasizing the potential impact on both Nevada and Arizona: "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. Lowering fuel costs is a bipartisan issue, and I’m grateful to partner with Governor Hobbs as we fight back against policies that will raise prices and cause regional economic disruption."

The governors' letter cited a report from the California Energy Commission (CEC), which warned that SB 950 could "artificially create shortages in downstream markets," resulting in inflated gas prices. The letter also raised concerns about potential refinery shutdowns due to new inventory mandates included in the bill, which could exacerbate supply shortages.

Both governors urged California to reconsider the legislation and to involve Arizona and Nevada in discussions about regional fuel policies, given the shared economic impact.

With fuel costs already straining consumers, Hobbs and Lombardo stressed that any further price increases could harm the economic stability of both states. As the debate over SB 950 continues, the governors hope to see a solution that balances environmental and economic priorities without disproportionately burdening neighboring regions.