Arizona Gov. Katie Hobbs and Nevada Gov. Joe Lombardo are urging California Gov. Gavin Newsom to reconsider a bill that could raise gas prices in their states. In a joint letter sent Tuesday, Sept. 10, Hobbs and Lombardo expressed concerns that the proposed legislation, which aims to regulate oil refiners in California, might inadvertently increase fuel costs and cause supply issues in Arizona and Nevada. Both governors said their states rely heavily on California pipelines for fuel.
The bill, currently under consideration by California lawmakers, would give the California Energy Commission the authority to enforce inventory requirements for refiners and impose civil penalties for non-compliance.
Newsom is advocating for these regulations as a means to stabilize fuel supplies and prevent sudden price spikes due to supply shortages. He argues that requiring refiners to maintain extra reserves will avoid shortages and keep gas prices in check. Newsom plans to fine refiners who do not comply, with the penalty funds being returned to consumers.