California’s New Gas Law: A Pump Price Nightmare for Arizona and Nevada?

Bipartisan pushback as Nevada and Arizona governors urge California’s Governor Newsom to halt legislation they say will hike fuel prices across state lines.

CARSON CITY, Nev. — In an unusual bipartisan alliance, Nevada Governor Joe Lombardo (R) and Arizona Governor Katie Hobbs (D) have come together to call on California Governor Gavin Newsom (D) to reconsider Assembly Bill ABX2-1, a piece of legislation that could have sweeping effects on gas prices in the western region. The bill, currently under discussion in California’s special legislative session, is aimed at regulating refinery inventory supplies but has raised alarm among neighboring states.

In a joint letter sent to Governor Newsom, Governors Lombardo and Hobbs emphasized the potentially disastrous impact of the proposed legislation on fuel prices in Nevada and Arizona. Citing a recent report from the California Energy Commission (CEC), the two governors warned that the bill could “artificially create shortages in downstream markets” and result in significantly higher costs for consumers outside of California, particularly in their own states.

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