Opinion: Why SB 950 is Bad News for Arizona

Opinion: SB 950 could have dire economic consequences for Arizona, despite its California focus.Photo byImage: Tysonomo Multimedia

PHOENIX - California’s Senate Bill 950 (SB 950), which seeks to regulate refinery maintenance and impose stricter requirements on fuel inventories, may seem like a well-intentioned move for California's consumers, but for Arizona, it's a different story.

This legislation could have serious consequences for the state's economy, driving up fuel prices and putting additional strain on Arizona businesses and consumers already struggling with inflation and high costs of living.

To understand the full impact of SB 950, it's essential to look at the broader energy landscape.

As the Institute for Energy Research (IER) highlights, gasoline prices in California are already higher than the national average, and for good reason.

California’s isolated transportation fuels market, unique gasoline blends, and costly environmental programs contribute to this price disparity.

Furthermore, the state's stringent regulations and high taxes have reduced its refining capacity by 12%, tightening the supply of gasoline and diesel, according to the IER.

Arizona relies heavily on fuel from California to meet its transportation needs. As California’s refining capacity shrinks under the weight of increasingly onerous regulations, fuel availability for neighboring states becomes more limited.

If SB 950 passes, this trend is likely to worsen, as refiners will be forced to spend more time and resources complying with new maintenance schedules and inventory requirements.

The Institute for Energy Research warns that as California continues to increase regulations on oil and refinery production, states like Arizona can expect even higher gasoline and diesel prices.

This is bad news for Arizona, which is already feeling the pressure of rising fuel costs. If California’s refiners are forced to limit production due to SB 950’s mandates, the reduced output will undoubtedly drive prices up across the region.

This won’t just affect the cost of filling up at the pump — higher fuel prices will translate to increased transportation costs for goods and services, affecting nearly every sector of Arizona’s economy.

From grocery stores to construction companies, businesses will be forced to pass these costs on to consumers, leading to price hikes across the board.

Moreover, the compliance costs associated with SB 950 will almost certainly be passed down to consumers.

Refineries are unlikely to absorb the increased costs of meeting these new regulatory requirements, and the result will be felt at gas stations in Arizona and beyond.

While California’s lawmakers may be seeking to shield their constituents from price volatility, the reality is that Arizona could end up paying the price.

The passage of SB 950 would also underscore a broader issue — the dangers of regional interdependence. When one state’s policies have far-reaching consequences on another, it creates an uneven playing field.

Arizona's economy should not be held hostage to California’s internal energy policies, especially when those policies threaten to make life harder for Arizonans who are already grappling with inflation and rising living costs.

In conclusion, SB 950 may aim to protect California’s fuel supply, but it would do so at the expense of Arizona.

Rather than imposing more burdensome regulations on refineries, California lawmakers should consider solutions that address the broader regional impacts of their policies.

Arizona deserves an energy plan that ensures affordable, reliable fuel for its residents — not one that subjects them to the unintended consequences of California’s regulatory overreach.

Note: The views and opinions expressed in this article are those of the author, Brian Cano Sr., Owner/Publisher of Tysonomo Multimedia. They do not necessarily reflect the views or opinions of Tysonomo Multimedia as a company.